Dubai: The Dubai index reversed early gains on Monday to end in negative territory with European indices. The Abu Dhabi index also ended weak.

The Dubai Financial Market General Index rose as much as 2.5 per cent, before ending 0.95 per cent lower at 4,377.41.

“The volatility has slowed down a bit. The calming impact has come from the expectations that US will raise rates later than sooner. Oil prices will be closely watched for the medium term outlook,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.

European stocks fell 0.6 per cent after rising 2.8 per cent on October 17. Markets had retreated on concern a potential recession in Europe will curb growth as the US Federal Reserve pares stimulus. A European Central Bank board member said last week covered bond purchases would begin in the next few days.

Brent crude traded for a fifth day close to a level that’s prompting speculation Opec will respond by cutting supply. West Texas Intermediate, which fell into a bear market this month, rose in New York.

Brent, the global benchmark, rose or fell through its closing level at least 12 times in trading on the London-based ICE Futures Europe exchange. It traded at $85.82 (Dh315.21) a barrel and has been near $85 since October 15.

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Arabtec, which was the most active stock by value, fell 1.29 per cent to end at Dh3.82. On Sunday, Arabtec said it plans to launch the first phase of a huge housing project in Egypt before the end of this year.

In March, Arabtec announced it would build one million homes in Egypt in a $40 billion project backed by the Egyptian and UAE governments, as part of efforts to ease the country’s housing shortage.

Emirates NBD gained more than 4.5 per cent at Dh9.12 per share ahead of its results.

“We will see sideways movement this week in the [UAE markets] given the calmness in the world markets. There should be less volatility in the market than previous weeks,” Khokhar added.

The Dubai index had shed about 14 per cent last week, triggered by a global sell-off. On Monday, out of a total of 30 shares traded on the exchange, shares of 23 companies declined, shares of six rose, while shares of the rest company remained unchanged.

In Abu Dhabi, out of a total of 28 companies, shares of six companies rose, while 13 of them declined and the other nine remained steady. Emirates Driving Company fell more than 10 per cent in trade.