The Dubai and Abu Dhabi bourses posted gains on Tuesday to trim their losses for the quarter.
The Dubai Financial Market General Index rose by 2 per cent, its best day of the week even as year-to-date it was down by 6.8 per cent.
The Abu Dhabi Securities Exchange was 0.83 per cent higher at 4,467.93 points, its second straight day of gains this week. It fell 1.35 per cent since the beginning of the year.
The day’s – and indeed the quarter’s – gains and losses came against a backdrop of fluctuating oil prices.
“The drop in oil prices and geopolitical tension such as in Yemen will affect the macro picture,” said Tariq Qaqish, the head of asset management at Al Mal Capital. “In general, if oil prices remain weak corporate earnings expectations for this year should be revisited.”
Mr Qaqish said that a successful US-Iran nuclear deal would improve trade relations, especially with the UAE, but it would increase oil supply and therefore put pressure on oil prices.
Banks were some of the big gainers. On the DFM it included Emirates NBD, which rose 6.2 per cent to close at Dh9.24.
Also in Dubai, shares in Damac surged 4.6 per cent after it reported first quarter sales at Dh2.8 billion.
Drake & Scull International fell 1 per cent to end at 67 fils, its lowest since June at Dh1.90 as its backlog reached a record high of Dh14.5 billion.
Shuaa Capital ended the day at 60 fils, down 6.4 per cent. Last week, the company said that it would set up a real estate fund with the Saudi real estate company Cayan Group to develop a $272 million project including residences and hotel apartments in Dubai.
In Abu Dhabi, among the big gainers was Invest Bank, whose share prices rose 14 per cent to Dh2.85. RAK Cement Company was 5 per cent higher to end the quarter at 83 fils.
Eshraq Properties share prices pared by 9.0 per cent to 60 fils as the company reported a net loss of Dh537.7 million during the year ending December 31. It had made a profit of Dh318.6m the previous year. RAK White Cement dipped by 9.5 per cent to Dh1.32.
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