Market Wrap: Local equities decline for a second day on investor concern that the European debt crisis is worsening, oil drop.
Capital shares at seven-month low over construction
Abu Dhabi's shares headed towards a seven-month low yesterday, as jittery investors cut positions in construction industry stocks over concerns that Europe's debt crisis is threatening global growth.
On the Abu Dhabi Securities Exchange General Index, Gulf Cement slumped 9.1 per cent to 89 fils a share.
Ras Al Khaimah Ceramics was down 3.8 per cent to Dh1.50. Arkan Building Materials lost 2.9 per cent to Dh1.34 a share.
The Abu Dhabi index fell 0.2 per cent to 2,531.88 points.
Oil prices declined, with Brent crude down as much as US$2.17 to $101.80 a barrel, near a seven-week low.
"Investors are watching oil closely as sentiment is very weak right now," said Marwan Shurrab, the chief trader at Gulfmena Investments in Dubai.
Construction and logistics stocks made decent gains on the Dubai Financial Market General Index but the index was weighed down by some property stocks.
Arabtec Holding, the contractor that helped to build the Burj Khalifa, was up 1.4 per cent to Dh1.37. Air Arabia's shares rose 0.9 per cent to 63 fils.
Aramex added 0.5 per cent to Dh1.81 a share. By contrast, Bellwether Emaar Properties was down 0.7 per cent to Dh2.75. The Dubai Financial Market ended flat at 1,446.59 points.
Elsewhere in the region, Kuwait's index rose 0.3 per cent to 5,872.40 points. Bahrain's measure lost 0.1 per cent to 1,220.08 points. Oman's index lost 0.3 per cent to 5,642.23 points. Qatar's benchmark lost 0.2 per cent to 8,385.33 points.
The Saudi Tadawul All-Share Index closed up 0.3 per cent to 6,103.78.