Sell-off on UAE markets continues
The sell-off on UAE markets continued for a second day as investors offloaded stocks that have gone ex-dividend.
The Abu Dhabi Securities Exchange General Index lost 0.4 per cent to 4,354.83, while the Dubai Financial Market General Index dropped 0.2 per cent to 3,378.82.
The close of the fourth-quarter earnings season has kept investors on the sidelines, said Sanyalak Manibhandu, the head of research at NBAD Securities in Abu Dhabi.
“We expect traded value to continue to drive lower until the market begins to price in the first-quarter operating and net performance, which might not be until deep into April,” he said.
Analysts feel that trading sentiment could be affected by changes in oil prices, credit outlook downgrades and audited earnings of some key companies.
“Arabtec, Drake and Scull and Dana Gas are three of the well-traded stocks that have yet to publish audited financials for 2015. Details in the statements may effect sentiment and affect trading when they are published,” he said.
In Dubai, Drake & Scull shed 3.6 per cent to 46 fils, while Emaar and Arabtec traded flat.
Oil prices meanwhile stabilised after starting the day lower. Brent, the European benchmark, traded at US$41.18 a barrel late afternoon UAE time, up from a low of $40.48.
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Published: March 21, 2016 04:00 AM