Commodities rout drags on Dubai shares

Copper prices fell almost 3 per cent to their cheapest in more than six years. Above, copper rods at a manufacturing plant in Russia. Maxim Shemetov / Reuters

Shares in Dubai slipped on Monday amid a broader rout in commodity prices as investors bet that prices would fall further.

No commodity was spared, with Brent trading more than 2 per cent lower at US$43.80 midafternoon UAE time, after posting rises at the end of last week. Nickel slid nearly 6 per cent to its lowest since 2003 and copper fell almost 3 per cent to its cheapest in more than six years. Lead sank to its lowest since 2010, while aluminium matched Friday’s low of $1,435, the weakest since 2009.

Even safe-haven gold was not immune as it hovered around $1,070.56 an ounce, having touched its lowest level in nearly six years.

The declines pushed Bloomberg’s Commodity Index to a 16-year low.

Asian stock markets’ performance was mixed, while European markets opened lower.

The Dubai Financial Market General Index drifted into lower territory in afternoon trading, eventually closing down 1 per cent at 3,255.14.

Arabtec Holding was among the worst performers, ending down 4.1 per cent at Dh1.16, while Amlak Finance closed 4 per cent lower at Dh1.43.

Aramex and du were the pick of the day’s gainers, closing up 1.5 and 1.2 per cent respectively.

In the capital, the Abu Dhabi Securities Exchange General Index finished unchanged at 4,250.38.

Waha Capital and Aldar Properties rose 2.7 and 2.2 per cent respectively.

Their gains were cancelled out by falls in banking stocks, with ADCB ending the day down 1.2 per cent at Dh6.30, while FGB, the heaviest-weighted stock on the Abu Dhabi index, fell 0.4 per cent to Dh12.20.

* with agencies

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