UAE stock reversed gains after a strong day on Sunday as traders booked profits following stimulus measures from the US Federal Reserve and European Central Bank.
Markets take a step back
UAE stock reversed gains after a strong day on Sunday as traders booked profits following stimulus measures from the US Federal Reserve and European Central Bank (ECB).
The Dubai Financial Market General Index sank 0.4 per cent to 1,589.18, while the Abu Dhabi Securities Exchange General Index slid 0.1 per cent to 2,626.32.
After a boost to Asian markets in early trading, the euphoria surrounding open-ended bond-buying programmes from the ECB and the Fed wore off by the time European markets opened. Global markets see a window of stability until an IMF delegation reports on Greece's public finances next month, said Luca Paolini, chief strategist for Pictet Asset Management.
But any gains could be fragile, given the languid state of the global economy, he added. "There are a lot of signals that the markets are overbought," he said. "From this point in time, the market can go up only if there is a pick-up in global growth and currently it's not very strong."
In Dubai, Tamweel, Dubai Financial Market Company and Gulf General Investment Company sank in trading. Gulf Navigation was the most active stock, rising 12.2 per cent to 24 fils each on volumes of 110.3 million.
In the capital, National Bank of Umm Al Qaiwain fell 3 per cent as it prepared for an update in its US$250m legal battle with Kuwait's Global Investment House, with a ruling on the case expected today.
Elsewhere in the Gulf, most other markets rose, except Oman which was flat. The Saudi Tadawul All-Share Index was flat at 7,149.42.
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