Dubai’s stock market fell for a fifth day in a row on Tuesday, as the market correction following a three-month rally showed no signs of abating. Shares in Abu Dhabi also fell sharply.
The Dubai Financial Market General Index opened in positive territory, but turned negative around midday, closing down 1.8 per cent at 3,324, its lowest level in almost a month. Only three stocks ended in positive territory.
Dubai’s headline index has lost 6.7 per cent of its value over the past week, with a series of disappointing earnings across the UAE dampening confidence.
Not helping matters was oil, which extended losses from Monday’s sharp sell-off ahead of the release of US government data, which is expected to show rising inventories. Brent crude futures traded around 1.5 per cent lower on Tuesday at US$45.11 a barrel.
Shares in bourse operator Dubai Financial Market led losses in Dubai, experiencing their worst fall in two months.
DFM shares dropped 8.3 per cent to Dh1.31, despite the exchange operator announcing a 27 per cent increase in first quarter profits on Monday.
Dubai Investments and Emaar Properties also suffered heavy losses, falling 4.3 and 2.3 per cent respectively.
Shares in Abu Dhabi followed a similar trajectory to their Dubai counterparts, falling for the fourth consecutive day.
Banks once again led the sell-off. ADCB and FGB shed 4.3 and 3.9 per cent following last week’s poor results.
Elsewhere in the region, the promise of extensive market reforms failed to stem a sell- off in Saudi Arabia, with the Tadawul All Share Index closing down 1.1 per cent.
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