UAE shares fall despite oil’s gains

16/05/2017 05:59 AST

Shares in Dubai and Abu Dhabi underperformed their Arabian Gulf peers yesterday, as higher oil prices boosted most regional bourses.

Brent crude futures surged by as much as 3.3 per cent yesterday, trading at about US$52.30 a barrel in the late afternoon, after Saudi Arabia and Russia said that they favoured prolonging curbs on production until early-2018.

The Dubai Financial Market General Index had its sharpest fall in three weeks, closing 1.1 per cent lower at 3,377.82, as demand for Arabtec Holding’s rights issue prompted investors to sell down other positions. The rights issue, which opened for subscription yesterday at below the current share price, had high volumes as day traders piled in, searching for easy profits.

"Speculators shifted some positions to actively trade the rights during the session, which placed some pressure on the liquid names," said Hani Konquar, the team leader for Mena equity sales and trading at Mubasher Fin­ancial Services in Dubai.

Arabtec Holding surged by as much as 6.8 per cent in early trading, before closing down 0.1 per cent at 76.2 fils.

Emirates NBD and DXB Entertainments led the sell-off of big names, finishing down 3.6 per cent and 5.6 per cent respectively. Emaar Properties, which reported a 15 per cent rise in first quarter profits on Sunday evening, closed 0.5 per cent lower at Dh7.42.

Shares in Abu Dhabi closed 0.6 per cent down at 4,564.31, dragged by First Abu Dhabi Bank, ADCB and Etisalat.

The Qatar Exchange led gains across the region, finishing 0.6 per cent. In Saudi Arabia, the Tadawul also finished up by 0.6 per cent, led by NCB, Sabic and Dar Al Arkan.

The Gulf Today