Shares in the UAE drifted lower on Wednesday, even as oil climbed and emerging market equities rose to a high for the year on the dimming prospect of a US interest rate rise this month.
MSCI’s Emerging Markets Index rose to its highest level in 14 months on Wednesday, as disappointing US services activity data suggested to traders that the Federal Reserve is less likely to raise interest rates when it meets on September 21.
Brent crude futures rose to their highest level since last Tuesday, trading at US$47.14 per barrel in the afternoon, after the Iranian president Hassan Rouhani said he supported talks between Saudi Arabia and Russia to try to stabilise the global oil market.
Arabian Gulf equities were subdued on Wednesday, with bourses in Kuwait and Oman the sole gainers. In Saudi Arabia the Tadawul ended down 0.8 per cent, while Qatar was off 0.7 per cent.
The Dubai Financial Market General Index trended lower throughout the day, losing 0.7 per cent to 3,517.87, as trading volumes in Dubai fell on the penultimate day of trading ahead of next week’s Eid Al Adha holiday.
Emaar Properties and DIB fell by 1.5 per cent and 0.7 per cent respectively, while Air Arabia and du led gainers.
In the capital, the Abu Dhabi Securities Exchange General Index fell 0.1 per cent to 4,507.20, as Etisalat and Aldar Properties lost ground.
Stock markets in Dubai and Abu Dhabi will be closed from Sunday, reopening on September 15. Markets in Oman, Saudi Arabia, Qatar and Kuwait will be closed all of next week, reopening on September 18.
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