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Dubai Equities Slip; Oil Prices Lift Abu Dhabi

DUBAI — UAE shares ended mixed on Thursday with Dubai slipping on profit-taking after recent rallies, and Abu Dhabi remaining steady as oil prices hit a one-year high.

Dubai index mover Emaar Properties which soared by 6.5 per cent on Wednesday, gave back some of its gains, shedding 1 per cent to Dh4.84. Low-cost carrier Arabia, declined by 2.5 per cent to Dh1.18.

The main index of the Dubai Financial Market which surged in the previous session to an 11-month high, slipped by 0.9 per cent to 2,350.91, dragged down by property and construction-related stocks which lost by 1.2 per cent. The index rose in three out of five sessions this week to gain 2.3 per cent from the previous trading week.

The benchmark index of the Abu Dhabi Securities Exchange inched up by 0.3 per cent to 3,239.74, gaining 1.5 per cent from last week.

“Dubai needed to see some pressure relieved. I would like to see a sideways move next week as we start to see earnings hit the tape,” said Matthew Wakeman, managing director of cahs-and-equity-linked trading at EFG-Hermes.

“All the signs are positive for the region through to the end of the year, but we need to start seeing evidence of growth and earnings momentum before we can say that a solid base has been formed by markets here.”

Blue chip stock Arabtec Holding, the country’s biggest construction company lost 1.1 per cent to Dh3.67. Property developer Deyaar Development, dropped 3.3 per cent to Dh0.89.

UAE shares have been rising steadily, with Dubai up by more than 43 per cent since January, while Abu Dhabi has gained more than 35 per cent, with investors largely tracking global rallies and indications of more signs of a turnaround in the world’s major economies. Recovery hopes has markets across Asia, Europe and the USstaging multi-year highs, while major corporates are churning out better-than-expected results and are more optimistic about their growth outlook. On the Wall Street, the Dow Jones Industrial Average ended above 10,000 on Wednesday for the first time since October last year, with earnings reports from Intel Corp. and JPMorgan Chase & Co. boosting sentiment ahead of more earnings reports from big US financial firms next week. Oil prices have also been lifting sentiment in the Gulf region, where most member-countries generate their income. The global slump which worsened in September 2009, saw oil prices plunging from its peak of about $147 a barrel in July of the same year. Crude oil prices on Thursday, surged to a one-year high close to $76 a barrel on a weak US dollar, soaring equity markets and stronger company earnings.

rocel@khaleejtimes.com