Dubai: UAE indices closed almost flat on Monday, ignoring Chinese rout that engulfed all major global equity indices.
The Dubai Financial Market General Index (DFMGI) ended 0.05 per cent lower at 4,145.68, after trading in a tight range of 4,139.87-4,176.91. About Dh357 million worth of shares were traded, almost a third of the daily average of Dh1 billion.
“[The] market was supported by strong expectations of second-quarter results amid selling in Chinese equities,” Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings.
Emirates NBD ended 1.43 per cent higher at Dh10.65, while Arabtec closed the day 0.41 per cent lower at Dh2.40.
Amlak Finance ended 0.42 per cent higher at Dh2.41, while Gulf Finance House closed 1.09 per cent lower at Dh0.728. Out of a total of 33 stocks traded on the exchange, the shares of 11 firms rose, while those of 15 firms fell.
Muted participation
“[The] international market performance and sell-off that we are witnessing currently [will] impact sentiment across the board and that is why we are witnessing muted turnover and low participation,” said Shurrab, adding “we expect to see low participation during the week.”
The Chinese index fell more than 8 per cent in trade to touch its lowest level since February 2007 amid economic concerns and fears of an end to Beijing’s inclination toward looser monetary policies.
Going forward, quarterly earnings are expected to have a huge impact on the stock performances of individual companies.
Companies like etisalat, du and Dubai Islamic Bank are scheduled to publish their results later in the week or next.
In Abu Dhabi, the securities Exchange index closed the day’s trading 0.18 per cent lower at 4,872.78. First Gulf Bank was 0.10 per cent lower at Dh15.35, while etisalat went up 0.05 per cent to Dh14.80.
Out of a total of 28 stocks traded on the exchange, the shares of eight firms rose, while those of 18 companies fell.
Saudi index tumbles
Saudi Arabia’s Tadawul index fell more than 2 per cent in trade weighed by weak crude oil prices, and lower than expected results from select companies.
The Tadawul index ended 2.38 per cent lower at 9,080.02 after Saudi Basic Industries (Sabic) closed the day 4.34 per cent lower at 94.75 Saudi riyals and Alinma Bank ended 1.41 per cent lower at 22.35 riyals.
Oil hit four-month lows on Monday after a steep drop in Chinese stock markets and on more evidence of a global supply glut that has halved prices over the past year.
Elsewhere in the Gulf, the Kuwait stock index ended 0.35 per cent lower at 6,259.70, while the Muscat Securities Exchange index ended 0.21 per cent lower at 6,568.09.
