x Abu Dhabi, UAESunday 23 July 2017

Fall in Dubai shares sees end of bull-market run

Markets Update: Dubai's market slinks out of bull-market territory, weighed upon by a slight decline in industrial data from the non-oil sector.

Dubai's market slumped back out of bull-market territory in early trading on Wednesday as weak industrial data weighed on sentiment.

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

As markets opened on Wednesday, the Dubai Financial Market General Index fell 0.2 per cent to 1,607.82, while the Abu Dhabi Securities Exchange General Index advanced 0.1 per cent to 2,681.75.

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.

The HSBC UAE Purchasing Managers' Index for November fell to a three-month low, but nevertheless pointed to growth in the non-oil economy for the ninth consecutive month.

A PMI reading of more than 50 signals expansion; below 50 signals contraction.

World markets rose in early trading, with the Nikkei 225 advancing 0.3 per cent to 9,480.00 and the Hang Seng Index gaining 1.5 per cent to 22,128.16.

Oil prices rose, with Brent crude futures up 25 cents to $111.33 per barrel.

ghunter@thenational.ae