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A 32-year-old Dubai Golden Visa Awardee, Stalter has three professional wins including the 2020 Euram Bank Open and two Challenge Tour titles
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Stocks Down on Lower Oil Price, Mixed Signals about Global Recovery
DUBAI — UAE shares drifted lower on Wednesday, bucking an overnight rebound on Wall Street as invesors cashed in profits following a drop in oil prices, and held back due to mixed signals about global economic recovery.
The benchmark index of the Dubai Financial Market lost 1.5 per cent at 1,788.51, pulled down largely by property and construction-related stocks, with 23 out of 27 traded stocks declining.
Union Properties went down for a third straight session, ending 4.4 per cent lower at Dh0.86. Shares of Union Properties have piled up losses of 26.8 per cent in four days since its disclosure of a second quarter loss, with investors increasingly anxious about its financial position. The main index of the Abu Dhabi Securties Exchange shed 0.6 per cent at 2,786.76. Losers outnumbered gainers 21 to 8, while six stocks were unchanged.
Trading remained thin and lacklustre with Dh627.127 million worth of shares changing hands in both bourses.
Markets worldwide bounced back from a selloff last Monday as some bright spots, including Hong Kong and Japan in Asia, and Germany in Europe, crawling back from recession, gave investors reason to dip back into stocks on Tuesday.
Investors though remained tentative as inconsistent economic and corporate reports about the US, the world’s largest economy, cast doubt about the pace of a global economic turnaround. Crude oil prices fell below $69 a barrel on Wednesday after a near 5 per cent slump in Chinese shares shook investor confidence. US crude for September delivery was down 40 cents at $68.79 a barrel. Member countries of the Gulf Cooperation Council supply about 20 per cent of the world’s oil requirements.
“Stocks have come a long away in the last six months and investors are trying to figure out how much upside there still is for stocks if the economy improves,” said Robert McKinnon, managing director of Al Mal Capital, adding that “volatility will increase because of the uncertainty.”
Emaar Properties, the Middle East’s biggest property company declined by 3.6 per cent to Dh2.94. Arabtec Holding, the country’s biggest construction company which is rushing to complete Burj Dubai by December, lost 3. 7 per cent at Dh2.60. Deyaar Development shed 1.4 per cent at Dh0.70.
Analysts said investors are now looking for new catalysts to push the markets upward again, but the anticipated mixed bag of economic reports will keep trading in a narrow range, especially as the seasonally lean, month-long fasting during the Ramadan holidays sets in. “It will be quite difficult to find positive leads to justify a rally, the markets will be keeping a close watch on global markets and on oil prices,” said Ali Khan, managing director at Arqaam Capital Limited.
In Abu Dhabi, property stocks led losers. Sorouh Real Estate, the emirate’s second largest property firm, lost 1.8 per cent, while top-ranked Aldar Properties gave up nearly a per cent at Dh4.14. Investment firm Aabar Investments fell by 1.6 per cent to Dh2.51.
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