UAE stocks continued to slump yesterday, falling to multi-week lows despite oil prices reaching a new four-month peak.
Brent crude edged up slightly yesterday, rising by 0.08 per cent after UAE markets closed. Prices continued to climb after last week’s historic deal to cut production for the first time in eight years, but fell by about 0.01 per cent in afternoon trading.
Despite the fillip in oil prices, stocks on both the Dubai and the Abu Dhabi bourses continued to edge downwards driven by concerns by investors of a weak third-quarter earnings season.
In the capital, the Abu Dhabi Securities General Index closed down by 0.09 per cent at 4,389.60, its lowest level since June 16, as investors braced for a flurry of poor results driven by historically low oil prices and government budget cuts.
The international fish farming company Asmak was the biggest loser, falling by 2.8 per cent to close at Dh1.73. National Bank of Abu Dhabi was also down by 2.2 per cent, closing at Dh8.70. Insurance company National Takaful was the biggest gainer of the session, rising by 5.2 per cent, while Aldar, Abu Dhabi’s largest listed property company, was the second highest gainer with its shares closing up 1.9 per cent at Dh4.
The Dubai Financial Market General Index also dropped to a new three-month low, down by 0.2 per cent to settle at 3,354.63.
Its biggest loser was insurance company Dar Al Takaful, which slipped by 3 per cent to close at 95 fils and Dubai Islamic Insurance, which fell by 2.8 per cent to close at 54 fils.
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