UAE stocks edged lower as the world waited for the US president Donald Trump to make his first address to Congress last night.
For investors in the Middle East, the big concerns are that the US could take steps to reduce its oil imports by attempting to boost its own shale oil and gas operations, and that any of his actions could increase the chances of the Federal Reserve increasing interest rates.
Prices for Brent crude slipped slightly during afternoon trading UAE time to US$55.77 per barrel.
The Dubai and Abu Dhabi bourses continued their recent trend of moving within very limited ranges.
The Dubai Financial Market General Index closed down 0.09 per cent at 3,630.32, led by Emaar Properties, which fell 1 per cent to Dh7.45. A rate hike could hurt property companies such as Emaar if it puts investors off buying property.
Arabtec, the UAE’s largest listed contractor, shed 2.3 per cent to 92 fils while Deyaar Development fell 0.5 per cent to 59 fils.
The gainers included bourse operator Dubai Financial Market, which rose 3.6 per cent to Dh1.46, and Emaar Malls, which rose 0.8 per cent to Dh2.62.
The Abu Dhabi Securities Market General Index fell 1.7 per cent to 4,552.09. Etisalat was the biggest loser, falling 4 per cent to Dh17.60, despite announcing a new technical services and support package with Saudi Arabia’s Mobily.
FGB fell 1 per cent to Dh13.65, while NBAD lost 1.9 per cent to Dh10.50 ahead of their final annual general meetings yesterday afternoon.
The two banks are set to start operations as a combined entity from April 1.
lbarnard@thenational.ae
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