Markets Update: The local exchanges declined on Tuesday as volatility dampened investor appetite for UAE equities.
Volatility depresses Emirates' markets
UAE stock markets declined yesterday as price volatility throughout the week dampened sentiment.
Arkan Building Materials sank 5.3 per cent to 87 fils on the Abu Dhabi Securities Exchange (ADX) General Index. Dana Gas fell 2.2 per cent to 44 fils on the ADX. Aldar Properties, the developer behind Ferrari World, declined 0.8 per cent to Dh1.14 on the ADX.
"This level of volatility doesn't reflect a trend or rhythm to win confidence from long-term investors," said Wadah Al Taha, the chief investment officer at Al Zarooni Group in Dubai. "There is no clear direction for the market, only speculation."
The ADX General Index was little changed at 2,504.78.
Emaar Properties, a major property developer in Dubai, fell 0.6 per cent to Dh3.25 on the Dubai Financial Market (DFM) General Index.
Arabtec Holding rose 2.3 per cent to Dh3.49 on the DFM. The contracting company's stock price has risen more than 100 per cent this year. The DFM General Index fell 0.5 per cent to 1,623.52.
The Saudi market fell 0.1 per cent to 7,545.28 yesterday after the index compiler MSCI announced it would resume coverage on companies in the kingdom after a three-year hiatus.
Investors speculated on Monday that the country had a good chance of attaining an upgrade to emerging-market status.
Kuwait's index rose 0.4 per cent to 6,399.70, Bahrain's advanced 0.3 per cent to 1,152.79, and Oman's MSM 30 Index fell 0.6 per cent to 5,833.26.
Qatar's QE Index lost 0.3 per cent to close at 8,672.01.