UAE stock indexes ended lower on Monday as investors waited for cues from the US president Donald Trump’s address to Congress.
Mr Trump is on Tuesday expected to provide a detailed report of what has been accomplished in his administration’s first 40 days. Investors will also be hoping for some clarity on his fiscal policies.
Sanyalak Manibhandu, head of research at NBAD Securities, said UAE benchmarks dipped and traded values fell to multi-session lows as investors paused at the end of the fourth-quarter earnings season. “Markets are awaiting some signs on pro-growth policies from the [US] president.”
The Dubai Financial Market General Index dropped 0.3 per cent to 3,633.46. Trade was led by Union Properties, which gained 1.7 per cent to Dh1.01. Trading volume on the Abu Dhabi stock exchange was also led by property stocks. The capital’s benchmark index ended 0.6 per cent lower at 4,628.56.
Eshraq Properties rose marginally to Dh1.2, with Aldar Properties falling to Dh2.4.
Saudi Arabia’s Tadawul index slipped 1.2 per cent as energy stocks continued to edge lower. Refiner Petro Rabigh fell 0.4 per cent despite reporting a profit for last year after major losses in 2015.
Mr Manibhandu said some investors, particularly in UAE equities, have made good gains since the lows of last year. “Investors may be pausing to decide what to do with gains made in the period.”
Oil prices rose on Monday as investors showed confidence in prices rising further, although gains were capped by the prospect of faster growth in US oil production. Brent rose 52 cents to $56.51 per barrel.
lgraves@thenational.ae
* with Reuters
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