2015-08-10

Lower Brent dents UAE stock market hopes

UAE markets were weak yesterday as equities came under pressure from low oil prices and a lack of positive sentiment.

image of


Brent fell to a six-month low of US$48.24 after Chinese data showed exports fell 8.3 per cent in July, before recovering to $48.85.

The Dubai Financial Market General Index fell 0.7 per cent to close at 4,068.46 points.

Gainers for the index were the Islamic insurer Aman and Kuwait-based Hits Telecom, while Union Properties dropped 4.3 per cent to Dh1.11 on heavy volumes.

The developer of Motor City in Dubai on Sunday reported a 96 per cent drop in second-quarter net profit to Dh19.3 million.

Sanyalaksna Manibhandu, the chief equities analyst at National Bank of Abu Dhabi, said that the second-quarter earnings season was drawing to a close, with only a few companies left to report.

"The developer of Motor City in Dubai on Sunday reported a 96 per cent drop in second-quarter net profit to Dh19.3 million."



“Unless the corporate sector comes out with something that is surprisingly positive, the market will be focused on crude and macro themes, which do not appear supporting of equities for now,” he said.

On the regional scale, news that Saudi Arabia was seeking to raise funds from the domestic debt capital market was seen as a negative by some UAE traders.

With the kingdom raising debt capital, it could mean less system liquidity is allocated to equities in the country as well as for the wider GCC region, according to Mr Manibhandu.

In the capital, the Abu Dhabi Securities Exchange General Index climbed 0.2 per cent to 4,822.77 points. Abu Dhabi Ship Building rose 12.5 per cent, while Invest Bank fell 2.26 per cent.

lgraves@thenational.ae

Follow The National’s Business section on Twitter

Original Link: http://www.thenational.ae/business/markets/lower-brent-dents-uae-stock-market-hopes

UAE stock market, dubai financial market, Union Properties, images of Lower Brent dents UAE stock market hopes

COMMENTS!


Dubai Calendar

Post
Fashion - Lifestyle

The Big Summer Sale (DSS 2015)

Thursday, 23rd July - Saturday, 1st August 2015
Post
Family

Dubai Summer Surprises 2015

Thursday, 23rd July - Saturday, 5th September 2015
Post
Family

Modhesh World 2015

Thursday, 9th July - Saturday, 29th August 2015

Latest News

Business Lower Brent dents UAE stock market hopes

Post

UAE markets were weak yesterday as equities came under pressure from low oil prices and a lack of positive sentiment.

2015-08-10