x Abu Dhabi, UAEFriday 21 July 2017

Rally on UAE markets falters

Markets Update: Local stocks slide back after strong gains on Sunday, while a push by Italy's leaders to cut the country's deficit sparks a rally on Asian markets.

Gains on the UAE's markets petered out in early trading today as investors took a breather from yesterday's rally after National Day.

The Dubai Financial Market General Index was flat at 1,404.13, while the Abu Dhabi Securities Exchange General Index fell 0.1 per cent to 2,469.78.

Emaar Properties, Drake & Scull International and mortgage provider Tamweel pushed Dubai's market higher on the open, but a decrease in Deyaar Development and parent company Dubai Islamic Bank weighed down the wider index.

In the capital, a 0.1 per cent dip in Etisalat's shares, the largest component of Abu Dhabi's index, outweighed gains at Aldar Properties and Sorouh.

The slide snapped a four-day run of gains on both emirates' markets. On Sunday, a string of good news on world markets released while markets were closed for National Day and the Islamic New Year pushed Dubai's index up 1.8 per cent, the biggest intraday gains since October, while Abu Dhabi's market rose 1.1 per cent.

Asian stocks gained in the early hours of the morning after Italy's government passed an austerity package. Japan's Nikkei 225 index climbed 0.6 per cent to 8,695.98, while the Hang Seng Index rose 0.2 per cent to 19,083.47.

Oil prices increased as geopolitical tension between Iran and the West threatened to escalate, with Brent crude futures rising 30 cents to $110.65 per barrel.

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