x Abu Dhabi, UAESaturday 22 July 2017

Global volatility hits Gulf markets

Local markets fell yesterday as they suffered the knock of effect of volatile global markets, which dipped back and forth between positive and negative territory during the session.

The Dubai Index closed down 0.38% at 1,672.01. Jeff Topping / The National
The Dubai Index closed down 0.38% at 1,672.01. Jeff Topping / The National

Local markets declined yesterday under the influence of volatile global markets.

European stocks rebounded during the day from Tuesday's heavy losses on fears about Spain's debt burden, as the country's debt yields fell back from 5.99 per cent to 5.58 per cent.

However, Asian stocks failed to make up previous losses and closed down for another day.

Local investors reacted negatively.

The Dubai Financial Market General Index closed the day down 0.38 per cent at 1,672.01.

The Abu Dhabi Securities Exchange General Index ended the day 0.58 per cent lower at 2,532.03. In Saudi Arabia, the Tadawul All-Share Index was trading 1.16 per cent lower at mid-session but closed 0.28 per cent higher at 7,573.28.

Analysts said the falls had been expected after the heavy sell-off on international markets the previous day.

"It makes sense. With fears over Spain, early trading in Europe was shaky. This affected trading patterns in the UAE," said Marwan Shurrab, the chief trader at Gulfmena Investments.

"The [Saudi Tadawul] Tasi index was subjected to aggressive profit taking with retail investors reducing their exposure, fearing a correction."

But Mr Shurrab said he expected a rebound in UAE markets if the European markets held up.

All the major European stocks were trading about 1 per cent or more higher in midday trading.

lmiller@thenational.ae