UAE markets closed flat on Tuesday amid thin trading even though oil prices fell following China’s devaluation of the yuan.
Opec revised up its growth forecast for global oil demand this year and maintained its projection of record global demand next year, despite turbulent market conditions spurred by economic instability in Greece and China.
In its August monthly report, Opec said it was expecting global demand for oil to grow by 1.38 million barrels per day – about 90,000 more than announced in its July estimates.
The group also kept unchanged its forecast last month that demand for oil next year would rise to 1.34 million bpd, as the global economy is expected to increase 3.5 per cent, up from 3.2 per cent this year.
The benchmark Brent crude lost US$0.71 per barrel to just under the $50 per barrel mark. It had climbed $1.80 per barrel to $50.41 per barrel on Monday.
“This is a typical August with no volatility and limited exchanges across the UAE,” said Sebastien Henin, a senior vice president at The National Investor.
He said many local and international investors were now sitting on the sidelines because of the summer holidays.
The Dubai Financial Market General Index edged up 0.1 per cent to 4,072.82, with Kuwaiti financial companies – Al Salam Group and Almadina – rising 4.3 and 3.9 per cent respectively. National Cement lost 5.26 per cent to Dh3.60 a share.
The Abu Dhabi Securities Exchange General Index closed flat at 4,815.53.
Abu Dhabi National Company for Building Materials rose 6.4 per cent to Dh0.66, while Asmak fell 8.5 per cent to Dh6.30 a share.
* with Agence France-Presse