UAE markets decline as oil prices fall to six-month lows

UAE stock markets fell on Sunday after oil prices fell to six-month lows at the weekend.

Oil dropped below US$50 per barrel on Friday, with the benchmark Brent crude declining 1.8 per cent to $48.61 per barrel, while West Texas Intermediate closed down 1.7 per cent at $43.87 per barrel.

Oil prices fell last week amid concern over the economic outlook of China, the world’s largest oil consumer, and excess supply from Opec. The strong dollar has also weighed on oil prices.

“Volumes are weak and we have returned to low oil prices,” said Hisham Khairy, the head of institutional trading at Menacorp brokerage in Abu Dhabi. “There is nothing giving a push for the markets to be trading positively.”

The Dubai Financial Market General Index dipped 0.6 per cent to 4,098.49, led by construction and real estate stocks. Arabtec fell 1.3 per cent to Dh2.28, while Emaar Properties lost 1.2 per cent to Dh7.82. Emaar Malls declined 1.8 per cent to Dh3.14.

The Abu Dhabi Securities Market General Index slipped 0.5 per cent to 4,808.95. RAK Properties fell 1.5 per cent to Dh0.64, while property developer Aldar lost 1.1 per cent to Dh2.64.

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