Dubai stock market hits two-week low on the back of falling oil price

Emaar Properties, developer Deyaar and Dubai Financial Market also saw prices down
By Reuters
Wed 21 Oct 2015 12:47 PM

Dubai's stock index slumped to a two-week low in early Wednesday trade as the prolonged drop in oil prices weighs on prices across the market.

Bourse bellwether Emaar Properties fell 1.9 percent, rival developer Deyaar slipped 1.1 percent, and Dubai Financial Market dropped 1.7 percent.

Two small-cap stocks, Gulf Navigation and Amanat Holding, accounted for nearly a third of the 33.3 million shares traded on the index as of 0710 GMT. The former was up 0.2 percent and the latter down 1.1 percent.

Day traders often target minor companies when there is little else to speculate on because these have smaller free floats, making it easier to move their share price.

Dubai's index fell 0.8 percent to 3,654 points, slumping to its lowest level since Oct. 6 as losers outnumbered gainers 20 to one.

Abu Dhabi's benchmark was similarly weak, falling 0.7 percent as no stocks advanced.

The sustained oil price slump has sapped Gulf confidence, while few companies in the United Arab Emirates have published third-quarter results, so investors may be waiting to see how the country's heavyweight firms have fared before committing more money to the market.

Qatar dropped 0.6 percent and Oman and Kuwait were both down 0.1 percent.

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