x Abu Dhabi, UAEFriday 28 July 2017

Bull stops running as Dubai shares decline

Markets Wrap: Dubai's market failed to sustain the momentum needed to keep its fifth bull market of the year running yesterday.

Weak economic data weighed down on sentiment on the Dubai market. Jeff Topping / The National
Weak economic data weighed down on sentiment on the Dubai market. Jeff Topping / The National

Dubai's market failed to sustain the momentum needed to keep its fifth bull market of the year running yesterday, as weak economic data weighed down on sentiment.

The Dubai Financial Market General Index entered the fifth bull market of the year on Tuesday, following a small rally after National Day weekend.

A bull market is defined as an increase of 20 per cent over a given period.

The DFM Index has struggled to maintain above this threshold compared with its level at the start of the year, currently up 18.8 per cent year-to-date, but traders are hopeful that the last month of the year could bring some improvement.

Lack of turnover and an absence of catalysts to drive markets higher were dampening spirits on the UAE's exchanges, said Marwan Shurrab, the chief trader and assistant fund manager at Gulfmena Alternative Investments.

"I'm expecting markets to start picking up going into year-end."

On Wednesday, the DFM Index fell 0.6 per cent to 1,610.76, while the Abu Dhabi Securities Exchange General Index was flat at 2,677.00.

In the capital, First Gulf Bank and Union National Bank made the biggest gains. In Dubai, Oman Insurance Company, Air Arabia and Ajman Bank led declines, while volumes dwindled on both markets.

Markets were restrained even though the HSBC UAE Purchasing Managers' Index for November pointed to growth in the non-oil economy for the ninth consecutive month.

ghunter@thenational.ae