|29 January, 2017

Blue chips pull Dubai index lower, as US travel ban overlooked

Dubai Islamic Bank and Emaar Properties, which contributes to more than 20 per cent to the index, fell 1.13 per cent and 0.66 per cent, respectively

An investor looks at stock information in front of an electronic display board at the Dubai International Financial Market March 21, 2010.

An investor looks at stock information in front of an electronic display board at the Dubai International Financial Market March 21, 2010.

REUTERS/Ahmed Jadallah

Sunday, Jan 29, 2017

Dubai: A fall in shares of blue chip firms weighed on market sentiment, pulling the Dubai index lower by nearly a per cent, overlooking the travel ban imposed on select nations including Iran and Iraq.

Dubai Islamic Bank and Emaar Properties, which contributes to more than 20 per cent to the index, fell 1.13 per cent and 0.66 per cent respectively. The Dubai Financial Market General index closed 0.95 per cent lower at 3,666.16.

“Today’s fall had nothing with do with the US move. Oil prices are a bit negative. We have had a decent start to the year, and we are entering in results now. I think there would be some people who would want to take money off the table,” Saleem Khokhar, head of equities at NBAD’s asset management group, said.

“There’s a little bit of a caution, but I think it is temporary.” The Dubai index gained 33 per cent in the past 12 months, making it the best performing index in the region.

Among other small cap stocks, Gulf Finance House fell to hit lower circuit, before closing 9.8 per cent lower at Dh2.30. Shuaa Capital closed 9.82 per cent weaker at Dh1.47. HITS Telecom closed more than 5 per cent lower at Dh0.760. Out of a total of 36 stocks traded on the exchange, shares of 23 firms fel, while another 11 rose. The rest remained steady. Shares worth Dh773 million were traded on the bourse, compared to Dh1 billion last week.

The Abu Dhabi Securities Exchange general index closed 0.81 per cent lower at 4,586.55. ASMAK-International Fish Farming closed 9.88 per cent lower at Dh2.92. Ras Al Khaimah Cements closed 8.42 per cent lower at Dh0.87. Abu Dhabi Commercial Bank closed 2.21 per cent lower at Dh7.07. First Gulf Bank closed 0.76 per cent lower at Dh13.10.

Out of a total of 33 stocks traded on the exchange, shares of 18 firms fell, while another 9 rose. The rest remained steady.

Good value

“UAE stocks still offer good value. You are in an environment where you see pro-growth policies coming through. UAE should look to perform quite well,” Khokhar said.

“Globally, equity markets have been in a risk prone environment, and on the back of that our markets would do well,” Khokhar added.

Saudi stocks fell 0.60 per cent higher at 7.177.53.

“People were nervous due to results. The underlying fundamental is still strong, and we need to watch the oil prices,” Khokhar said.

The Qatar exchange index closed 0.96 per cent lower at 10,884.70. The Muscat MSM 30 index closed 0.22 per cent higher at 5,763.38.

By Siddesh Suresh Mayenkar Senior Reporter

Gulf News 2017. All rights reserved.

More From Equities