Dubai Financial Market, Gulf stocks drop as oil price descends

27/01/2016 08:15 AST

Stock markets in the UAE and Qatar fell in early trade on Tuesday, following Asian shares lower as oil prices broke below the $30 a barrel mark.

Brent fell 3.0 per cent to $29.58 a barrel in Asian trade, as fresh worries about oversupply from top producers Saudi Arabia and Iraq spooked the market.

Japan’s Nikkei fell 2.3 per cent while Hong Kong’s Hang Seng Index fell 1.9 per cent, with MSCI’s broadest index of Asia-Pacific shares outside Japan falling 1.1 per cent after two days of gains since late last week.

Dubai’s bourse dropped 1.7 per cent to 2,659 points in the first 20 minutes of trade, heading back towards a 28-month low. Shares in Arabtec and Drake and Scull fell 1.7 and 4.5 per cent respectively. Emaar Properties, the largest stock by market value in the property sector, traded down 2.4 per cent.

Abu Dhabi’s index dipped 0.3 per cent in the first 20 minutes of trade, although volumes were weak. Dana Gas was down 2.4 per cent, on track to repeat the fall posted on Monday. Real estate developers Aldar Properties and Eshraq Properties were each down more than 2.0 per cent.

Qatar’s benchmark was down 1.0 per cent, dragged by oil-linked companies. Gulf International Services and Qatar Gas Transport Co both fell more than 3.0 per cent.

Vodafone Qatar was down 2.6 per cent. The affiliate of Vodafone Group, reported a 72.2 million riyal net loss in the third quarter according to Reuters calculations, which was 5 per cent wider than the same year-ago period.

The National