Dubai shares retreat after early rally

Shares in Dubai yesterday failed to capitalise on positive news from China and Greece over the weekend, as an early rally fizzled out to leave the headline index virtually unchanged.

The DFM General Index rose by 0.7 per cent in the first two hours of trading, but it retreated in the afternoon as liquidity dried up. The headline index eventually lost 0.05 per cent at 4,015.27.

“China’s rise on Friday provided a strong foundation for today’s trading, and there was also optimism over Greek talks, so it was natural to see a positive reaction early in the day,” said Julian Bruce, the head of institutional trading at EFG-Hermes in Dubai.

The EU’s late decision to cancel a key summit yesterday on Greece had little bearing on UAE stocks, he said, attributing the afternoon slide instead to dwindling volumes.

In the capital, Abu Dhabi’s headline index rose by 0.8 per cent in early trading, before trimming gains to end the day up 0.4 per cent at 4,730.54.

Trading was dominated by Dana Gas, which accounted for three-quarters of volumes on an otherwise quiet day.

Dana’s shares rose by 1.64 per cent to 62 fils.

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