Weaker oil prices weigh on UAE bourses

UAE markets fell on Sunday as declining oil prices weighed on stocks.

The price of Brent oil declined below US$55 per barrel for the first time in more than three months on Friday because of oil oversupply and disappointing economic indicators from China.

Brent closed down 0.65 per cent to $54.62 per barrel in London, while West Texas Intermediate crude dropped 0.31 per cent to $48.14 per barrel in New York.

“Markets are reacting to the drop in the price of crude,” said Sanyalak Manibhandu, the research manager at NBAD Securities. “There is also some profit taking, which is normal.”

The Dubai Financial Market Index fell 1.2 per cent to 4,147.63, dragged down by declines in heavyweights such as the property developer Emaar Properties and the construction company Arabtec.

Arabtec finished down 3.2 per cent at Dh2.41, while Emaar lost 1 per cent to Dh7.96.

The Bahrain-based Islamic investment bank Gulf Finance House fell 3 per cent to 0.736 dinars. The company on Saturday said it was acquiring a majority stake in a Dubai-based private school.

In Abu Dhabi, the index dipped 0.7 per cent to 4,865.

The Sharjah-based energy company Dana Gas fell 5 per cent to Dh0.56, while the Abu Dhabi-based energy company Taqa declined 4.23 per cent to Dh0.68.


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