UAE indices off early lows as oil recovers
Siddesh Suresh Mayenkar
March 16, 2016
Analysts see the indices in a range as traders would eye the first quarter results for direction
Dubai: UAE indices were off early lows on Wednesday closely following a recovery in oil prices.
The Dubai Financial Market General Index closed 0.66 per cent lower at 3,299.82, after falling to a low of 3,253.10. The Abu Dhabi Securities Exchange General index closed 1.34 per cent lower at 4,344.34.
“Markets started on a negative note, but the recovery in oil prices also led to some bounce back in local equities,” said Muhammad Shabbir, head of equity funds & portfolios at Rasmala. Oil prices rose more than 2 per cent after falling more than 5 per cent as Opec and non-Opec members decided to meet in mid-April.
Most of the stocks in Dubai ended mixed. Arabtec ended more than 3.5 per cent higher at Dh1.61. Emaar Properties closed more than 2.62 per cent lower at Dh5.95. Dubai Parks & Resorts ended more than 6 per cent higher at Dh1.40. Dubai Investments closed more than 2 per cent lower at Dh2.10. Gulf Finance House ended 4 per cent higher at Dh0.768. Out of a total of 35 stocks traded on the exchange, shares of 17 firms rose, while other 12 firms fell.
“Over the next two to three weeks, markets would continue to be in a range. On the macro front, some hope is developing. But again soon the realisation would hit the ground that even if oil hits $50 (per barrel) it would still hit a deficit,” Shabbir said.
Oil has rebounded after slumping to a 12-year low this year amid speculation that a global surplus will ease amid stronger demand and falling US output.
In Abu Dhabi, stocks ended almost flat with exception of Waha Capital and Dana Gas. Dana Gas ended nearly 2 per cent lower at Dh0.50, while Waha Capital ended 2.24 per cent higher at Dh2.28.