15/01/2015 05:39 AST
UAE stocks ended steady on Wednesday in a tight range, ignoring weak crude oil prices. Saudi’s Tadawul index, however, rose.
The Dubai Financial Market General Index ended 0.01 per cent lower at 3,814.05, after trading in a tight range of 3,790.88-3,862.11.
“We took respite from weakness in international oil market. I don’t how long it would continue. People are a bit exhausted after looking at falling oil prices for the past few weeks, now we have reached such a low level, so if it goes up or down slightly it won’t change the big picture,” said Sebastien Henin, head of asset management at The National Investor.
Crude oil traded near the lowest close in more than five and a half years in New York and London as Opec nations predicted the global surplus would persist and US stockpiles were forecast to rise.
Oil slumped almost 50 per cent last year, the most since the 2008 financial crisis, as Opec (Organisation of Petroleum Exporting Countries) resisted calls to cut production even as the US pumped at the fastest rate in more than three decades.
In stock specific movements, Damac Properties fell 6.30 per cent to end at Dh2.53, while Hits Telecom Holding also ended 3.95 per cent lower at Dh0.389.
Air Arabia ended 3.11 per cent higher at Dh1.660, while National Central Cooling also ended 2.7 per cent higher at Dh1.14.
Out of 32 stocks traded on the exchange, shares of 20 companies rose, while shares of 9 companies fell.
The Abu Dhabi Securities Exchange General Index also ended at 4,506.32, down 0.08 per cent.
Abu National Hotels ended 9.87 per cent lower at Dh3.56, while Abu Dhabi National Co for Building Materials ended 5.88 per cent lower at Dh0.80.
Out of 28 companies traded on the exchange, shares of 11 companies rose, while shares of 12 companies declined.
Sidelines
“It’s a wait and see situation for investors are many of them are on the sidelines waiting to see to better valuations to enter the market,” said Henin.
Volumes edged up to cross Dh1 billion on Wednesday compared to Dh700-800 million earlier in the week.
Analysts said the market was preparing ground ahead of announcement of fourth quarter results.
“We shouldn’t have many surprises as far as results are concerned. We should in line with expectations except for petrochemicals, which should take a hit,” said Henin.
Emirates NBD’s board will meet on January 18 to discuss their fourth quarter results. Emirates NBD shares ended 0.45 per cent lower at Dh8.8.
Elsewhere in the region, Saudi’s Tadawul ended 0.71 per cent higher at 8,551.93, while Muscat Securities Exchange MSM 30 index ended 0.99 per cent higher at 6,432.80.
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