Dubai index snaps gaining streak as DIB in focus

31/05/2016 05:51 AST

The Dubai index fell on Monday, snapping a five day gaining streak, as markets witnessed selling pressure on lack of news flow.

The Dubai Financial Market General index closed 1.61 per cent lower at 3,306.44, after gaining more than 3 per cent in the previous five sessions.

“People are still waiting for news and that has led to some more selling,” Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities told Gulf News. “There is no markets open in the US and the UK, so there are fewer participants in markets.”

In terms volumes, rights of Dubai Islamic Bank (DIB) was the top most in terms of traded value. Dubai Islamic Bank’s rights ended 1 per cent higher at Dh2, while shares of DIB ended 4.06 per cent lower at Dh5.20. Traded value in Dubai rights and shares was at Dh86 million, more than 30 per cent of the total volumes. Emaar Properties ended more than 2 per cent lower at Dh6.24. Dubai Parks and Resorts also ended 2 per cent lower at Dh1.38.

The Abu Dhabi Securities Exchange general index closed 0.88 per cent lower at 4,259.54. Commercial Bank International ended 1 per cent higher at Dh2.02, while Aldar Properties ended 0.79 per cent lower at Dh2.60.

Tight liquidity

Indicating a tight liquidity situation, sovereign and corporate issuers have raised $14 billion in May alone.

“People are still looking at the rising cost of funds. You have seen how sovereign and corporates have rushed to debt capital market to raise funds,” Manibhandu said.

All these factors point out to weak fundamentals, tight liquidity, and therefore investors are less interested in the market.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 1.15 per cent lower at 6,354.22. “The outlook is tough for Saudi stocks as liquidity is tight. Crude oil has gone up but not enough as it is still below the break even,” Manibhandu said.

Qatar exchange index closed 1.28 per cent lower at 9,552.04, while Muscat MSM 30 index closed 0.88 per cent lower at 5,838.56.

Gulfnews