UAE stock markets hit by falling oil prices

03/05/2016 05:35 AST

UAE equities continued their downward trend on Monday, as falling oil prices contributed to continuing negative sentiment over earnings.

Brent crude futures, which closed last week above US$48 per barrel for the first time since November, fell over a dollar on Monday, trading around $46.22 a barrel on Monday afternoon, after Iraq and Iran announced sharp rises in oil exports for last month.

Shares in Dubai were the worst performers across the Arabian Gulf on Monday. The Dubai Financial Market General Index closed 1.8 per cent lower at 3,385.31, its fourth consecutive day in the red, and its worst one-day fall in two months.

Shares in Emaar Properties closed 2.11 per cent lower at Dh6.50 apiece, despite the developer announcing first-quarter results that were in line with analyst forecasts.

Mashreq shares regained ground after Sunday’s sharp fall, ending the day up by 4 per cent at Dh78. Dubai’s index has lost 4.8 per cent of its value in the past week, but it remains 7.44 per cent higher for the year.

In the capital, the Abu Dhabi Securities Exchange General Index closed 0.81 per cent lower at 4,469.81, with ADCB, Aldar Properties and NBAD acting as the main drag on the index.

Shares in Etisalat ended the day unchanged at Dh18.85, after the telco announced it had agreed to sell its Sudanese fixed-line operator Canar Telecom to Zain Sudan for Dh349.6 million.

Agthia was the pick of only four gainers on the index, closing up 2.1 per cent at Dh7.77. It announced on Monday a deal to open a water-bottling plant in Kuwait. Saudi Arabia’s Tadawul All-Share Index ended the day 0.5 per cent lower at 6,716.49.

The National