Abu Dhabi stocks fall with oil and global peers

Tuesday, Sep 29, 2015

Dubai: Abu Dhabi and Dubai stocks fell almost one per cent on Tuesday as weak oil prices and negative leads from its world peers weighed on sentiment. Saudi Arabia’s Tadawul index also fell after trading resumed after the Eid Al Adha holidays.

The Abu Dhabi Securities Exchange General Index fell 0.89 per cent to end at 4,475.98.

“Asian markets were down with oil and Saudi markets opened after holidays, so both factors played on the sentiment which was negative,” said Mohammad Shabbir, head of equity funds & portfolios at Rasmala Investment Bank.

Global stocks tumbled to their lowest in more than two years as pressure built on raw materials prices and emerging markets. Oil prices fell more than 2 per cent on Monday.

In Abu Dhabi, etisalat shares fell 1.05 per cent to end at Dh14.15, while Abu Dhabi Commercial Bank closed 2.53 per cent lower at Dh7.31. First Gulf Bank closed 1.06 per cent lower at Dh14. Dana Gas closed 3.57 per cent lower at Dh0.54.

Negative leads

“The market would be linked to the prevailing investment climate, and political tensions in the Middle East, so as long as both factors are playing, we would see pressure on the market,” said Shabbir.

Volumes have been very very thin as most of the investors are absent, Shabbir said, adding “Investors are waiting for results before taking fresh positions and also the political climate.”

Saudi volumes were at 1 billion Saudi riyals on Tuesday compared to an average of 7-8 billion riyals. In Dubai, volumes were at Dh291 million, a quarter compared to the average of Dh1 billion.

“As we move into the year-end, the focus would be on dividend yielding names like etisalat and du among others,” said Shabbir.

The Dubai index closed 0.78 per cent lower at 3,554.43. Emaar Properties closed 1.25 per cent lower at Dh6.30, while Dubai Islamic Bank closed 1.62 per cent lower at Dh6.70. Damac Properties closed 2.89 per cent lower at Dh3.02.

Arabtec closed 1.12 per cent higher at Dh1.80.

Out of a total of 31 stocks traded on the exchange, shares of 19 firms fell, while another 8 rose.

In Saudi Arabia, the Tadawul index fell weighed by falling oil prices. The Tadawul index was down 1.66 per cent to be at 7,319.03.

Brent crude has dropped about 3 per cent to around $47.50 a barrel since the Saudi bourse last traded on September 21.

Saudi Basic Industries fell 0.53 per cent to be 77.25 riyals.

Elsewhere in the Gulf, Qatar Stock Exchange index closed 1.39 per cent lower at 11,275.12, while Kuwait Stock Exchange index closed 0.23 per cent lower at 5,751.20.

By Siddesh Suresh ?Mayenkar Staff Reporter