UAE seen consolidating; Asian dip to weigh

Dubai's benchmark has already gained 25% this, consolidation expected

Dubai's benchmark has gained about 25 percent so far this year, and analysts are expecting a consolidation.

Dubai's benchmark has gained about 25 percent so far this year, and analysts are expecting a consolidation.

UAE markets are likely to take a breather from the recent bull run and a dip in Asian shares would weigh as renewed concerns arise about Chinese growth.

"I don't see clear-cut global sentiment suddenly turning, but local variables are not what's driving the markets," says Ibrahim Masood, senior investment officer at Mashreq. "It's wise to keep an eye on the rest of the world, like China. What's happens there will ultimately decide how our markets will behave."

Dubai's benchmark has gained about 25 percent so far this year, and analysts are expecting a consolidation.

Abu Dhabi National Energy on Wednesday said it expects to increase capital spending to between US$2bn to US$2.2bn this year as it pushes ahead with expansion plans.

UAE's economic growth is expected to slow to 2.3 percent this year from an estimated 4.9 percent in 2011, the International Monetary Fund said on Wednesday.

US April crude rose 31 cents to US$105.75 a barrel by 0312 GMT, while in London ICE Brent crude for April delivery edged up 3 cents to US$125 a barrel.

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