UAE stock markets fell yesterday as the oil price rout continued to shake investor confidence.
The European benchmark crude Brent, which fell below US$50 per barrel on Monday, recovered some of its losses to trade just above $50 mid-afternoon yesterday in London.
“The oil price drop is affecting the market and oil prices may go even lower,” said Hisham Khairy, head of institutional trading at the brokerage Menacorp in Abu Dhabi.
“People are afraid and they are reducing their exposure to the market.”
The Dubai index slipped 0.5 per cent to 4,096.63, led by property and construction stocks. Drake & Scull International was the most active stock by volume, falling 1.32 per cent to Dh0.75. Emaar Properties dipped 0.88 per cent to Dh7.90.
The Abu Dhabi index dropped 0.2 per cent to 4,811.71, also led by real estate stocks. Aldar Properties was the most active by volume, declining 1.5 per cent to Dh2.63, despite posting a better-than-forecast 18 per cent profit rise in second-quarter.
Trading volumes in Dubai and Abu Dhabi have also been weak during the quiet summer months, further putting pressure on share prices.
dalsaadi@thenational.ae
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