UAE indices ends flat, Saudi tumbles as oil, China eyed

Wednesday, Aug 19, 2015

Dubai: UAE indices closed flat on Wednesday as investors eyed the movements in crude oil and China. Saudi’s Tadawul index fell more than 2 per cent.

The Dubai Financial Market General Index closed 0.15 per cent higher at 3,833.30, after moving in the tight range of 3,793.18-3,855.94.

Volumes fell to Dh328 million, from the peak of Dh1 billion a few weeks earlier.

“Markets have been steady, Volumes have fallen a lot, and ideally markets should come down more as even global markets are edgy,” Muhammad Shabbir, head of equity funds & portfolios at Rasmala Investment Bank told Gulf News.

Gulf Finance House ended 0.671 per cent lower at Dh1.76, while Dubai Islamic Bank closed 0.69 per cent lower at Dh7.20.

Emaar Properties ended 0.14 per cent higher at Dh7.11.

Amlak Finance closed 0.48 per cent lower at Dh2.08.

“The stocks which are exports oriented, banks should do good, and we are neutral on consumer firms,” Shabbir said.

Out of a total of 32 stocks traded on the exchange, shares of 16 firms rose, while shares of 12 firms fell.

Oil prices steadied on Wednesday ahead of US oil data expected to show falling crude and gasoline stockpiles, raising hopes of increased demand for crude. Prices consolidated after a six-week rout driven by global oversupply and concerns about falling demand in Asian economies and the United States.

Liquidity concern:

“There is a talk that people are having margin calls in Saudi. There is also a talk that some of the institutions which are investing now in the stock markets could be required to invest in the bond market,” said Shabbir.

Saudi’s Tadawul index closed 2.5 per cent lower at 7,991.28, extending losses for another session. The index has shed more than 20 per cent in the past one year.

Alinma Bank closed more than 3.5 per cent lower at 18.75 Saudi Riyals, while Etihad Etisalat Co. closed 1.81 per cent lower at 24.40 Saudi Riyals. Saudi Basic Industries rose 0.35 per cent higher at 89.25 Saudi Riyals. Thursday is the last day on which investors can buy in the stock to participate in the dividend.

Elsewhere in the Gulf, Qatar Stock Exchange index closed 0.30 per cent lower at 11,635.04, while Muscat Securities MSM 30 index closed 0.63 per cent lower at 6,152.30.

Kuwait Stock Exchange index closed 0.43 per cent lower at 6,167.91.

In the wider Middle East, Egyptian EGX 30 price return index closed 2.13 per cent lower at 7,240.77.

By Siddesh Suresh ?Mayenkar Staff Reporter

Gulf News 2015. All rights reserved.