Risk factor hits UAE equities

UAE equities fell alongside global stock markets, which declined on fears of heightened geopolitical risk after Turkey downed a Russian fighter jet over Syria.

European markets opened sharply lower on Tuesday, following reports that Turkey had downed a Russian military aircraft that it claimed had strayed into Turkish airspace. Russia’s dollar-denominated RTS Index fell as much as 4 per cent.

The Dubai Financial Market General Index closed down 1.4 per cent at 3,209. 21, with Arabtec Holding among the main laggers of the day.

The company’s shares ended down 4.3 per cent at Dh1.11, after it announced the resignation of its acting chief executive Mohammed Al Fahim, with the fellow board member Saeed Al Mehairbi replacing him.

Emaar Properties fell 3 per cent to Dh5.95, while Amlak Finance retreated 2.8 per cent to Dh1.39.

Drake & Scull International slipped 2.3 per cent to 42 fils, even as the company announced contracts in Abu Dhabi and Dubai with a combined value of Dh131 million.

The Abu Dhabi Securities Exchange General Index dropped 0.7 per cent to 4,218.47.

Dana Gas retreated 2.3 per cent to 41 fils, while Aldar Properties ended 2.1 per cent lower at Dh2.33.

FGB, the country’s third biggest lender in terms of assets, closed down 0.4 per cent at Dh12.15, amid reports it had cut about 100 jobs in the face of tougher economic conditions. The softness in local share prices came despite a recovery in oil, with Brent crude futures trading up around 50 cents per barrel at $45.33 midafternoon.

The rise had a beneficial impact on Saudi equities, with the Tadawul All Share Index ending up 0.7 per cent at 7,202.10.


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