Oil price slide drags UAE indexes lower

01/09/2016 05:22 AST

UAE shares eased on Wednesday, dragged lower by a fresh fall in oil prices. Brent crude futures dipped below the US$48 a barrel mark on Tuesday, eventually trading at about $47.96 a barrel Wednesday afternoon as US stockpiles increased and hopes for a production cut agreement at an Opec meeting this month subsided.

The commodity came under further pressure after Iran announced that it planned to step up oil production to 4 million barrels per day by the end of the year, from 3.6 million bpd currently.

The falling price weighed on bourses across the Arabian Gulf, with Bloomberg’s GCC 200 Index finishing 0.8 per cent lower.

Shares in Dubai were up marginally 90 minutes after the opening, but drifted lower throughout the day, closing down 0.2 per cent at 3,504.40, dragged lower by Emaar Properties and DIB.

Deyaar Development finished down 0.3 per cent at 60 fils after the developer announced that it had commenced work on a new 408-unit hotel and serviced apartments development in Al Barsha in Dubai, with work expected to be completed in December next year.

Emirates NBD and Amanat were the pick of a handful of gainers, closing up 1.8 per cent and 1.6 per cent, respectively.

Abu Dhabi stocks tracked their counterparts in Dubai, erasing early gains during the afternoon session to finish 0.5 per cent lower at 4,471.01.

FGB and Etisalat closed down 0.8 per cent and 0.2 per cent, respectively. ADIB led the gainers with a 2.4 per cent rise.

The National