Construction stocks dragged on the UAE's markets at the start of the trading week, as the announcement of several major building works did little to combat the gloom on world markets and a falling oil price.
The Dubai Financial Market General Index fell 1.1 per cent to 1,564.39 in early trading, while the Abu Dhabi Securities Exchange General Index slid 0.1 per cent to 2,497.35.
The losses for Gulf stocks come as oil prices cool, with Brent crude futures falling US$2.83 (Dh10.39) on Friday to $113.61 per barrel and Nymex crude losing $4.05 to $98.49 per barrel. It was the first time the American benchmark had closed beneath $100 per barrel since February.
Arabtec was named among a consortium of construction companies, including CCC and Turkey's TAV Construction, as the preferred bidders for the construction of the Midfield Terminal Building at Abu Dhabi International Airport.
The company's shares, which saw big gains during the first few months of the year as traders speculated that it was due to be awarded the contract, fell 1.7 per cent, to Dh3.38 each.
Drake & Scull International announced a Dh200m contract for the construction of a tower in Dubai's Business Bay. The company's stocks were unchanged, at 86.8 fils each.
Emaar Properties, the developer of Dubai's Burj Khalifa and which is regarded as a bellwether stock, also decreased. It fell 1.6 per cent, to Dh3.06.
The Saudi Tadawul ended yesterday's trading session down 1.27 per cent, at 7,450.26, even as HSBC's Purchasing Managers' Index gave the kingdom its strongest reading for non-oil private sector activity in nine months.
ghunter@thenational.ae
twitter: Follow and share our breaking business news. Follow us
iPad users can follow our twitterfeed via Flipboard - just search for Ind_Insights on the app.
