Gulf stock market rally short-lived as oil falls back

The recovery in regional share prices proved short-lived, as stocks again tracked lower oil prices on Monday.

Brent crude futures fell by $2 per barrel during midmorning trade, bringing to an abrupt end a three-day rally in which prices rose by more than $20.

“We’ve seen the end of snowstorms in the USA, which could weigh on prices,” said Thomas Pugh, a commodities analyst with Capital Economics in London. “There’s also signs that people are just selling after the recent rally to book some profits.”

Shares in Dubai rose slightly in early trade, but reversed dir­ection after oil’s drop, eventually closing down 1.9 per cent at 2,757.08.

Abu Dhabi stocks followed a similar trend, ending down 0.6 per cent at 3,814.85.

Saudi Arabia’s Tadawul was down by less than 1 per cent in late trading.

Arabtec Holding and Damac Properties were among the worst-affected names in Dubai, shedding 4.9 per cent and 4.1 per cent respectively.

Emirates NBD was the pick of the gainers, rising 2.2 per cent to Dh6.80.

Agthia Group was the main loser in Abu Dhabi, falling 4.9 per cent to Dh6.98, its lowest level in more than nine months.

Follow The National’s Business section on Twitter

Share This Post