UAE stocks take a hit from weaker oil prices

13/03/2017 06:05 AST

Shares in the UAE and Saudi Arabia began the week lower on Sunday, following a sharp decline in oil prices over the weekend.

In Dubai, the benchmark index was dragged lower by Dubai Investments. Crude oil prices fell to a three-month low on Friday, as US stockpiles climbed to 528.4 million barrels. Brent crude futures settled at US$51.37 per barrel.

"Lower oil prices at the weekend put pressure on both UAE and Saudi markets," said Hani Konquar, the team leader for Mena equity sales and trading at Mubasher Financial Services in Dubai.

"For Dubai, we saw further downside on the market from the sell-off of Dubai Investments, as their dividend distribution announcement … was not as expected."

The Dubai Financial Market General Index closed 1.1 per cent lower at a new three-month low of 3,480.92.

Dubai Investments, which proposed a 10 per cent cash and 5 per cent bonus shares dividend for 2016 on Thursday, led the sell-off of big- name stocks, finishing 6.5 per cent lower at Dh2.32.

Shuaa Capital led gainers, rising 14.7 per cent after announcing the acquisition of Abu Dhabi companies Integrated Capital and Integrated Securities.

The Abu Dhabi Securities Exchange General Index closed 0.5 per cent lower at 4,436.43 on the exchange’s quietest day of trading so far this year, owing to falls by FGB and Etisalat.

In Saudi Arabia, the Tadawul finished down 1.2 per cent, thanks to sell offs by Jabal Omar Development, Sabic and Ma’aden. Shares in Bahrain led gains across the Arabian Gulf, closing up 0.9 per cent.

The National