UAE markets stabilise after sharp drops

Dubai's stock index tumbled 7.3% on Tuesday and was down 28% this month
UAE markets stabilise after sharp drops
(AFP/Getty Images)
By Reuters
Wed 17 Dec 2014 11:32 AM

Gulf stock markets were relatively calm in early trade on Wednesday after falling sharply in the previous session when Brent crude oil fell below $60 per barrel.

Dubai's stock index, which tumbled 7.3 percent on Tuesday and was down 28 percent this month, rose 0.7 percent as half of traded stocks gained.

Local investors hope that foreigners looking to exit the market before the end of the year have already done so and that selling pressure will now subside, said Sanyalak Manibhandu, manager of research at NBAD Securities in Abu Dhabi.

Also, some may be betting that money from Emaar Properties' AED9 billion ($2.5 billion) dividend payout on December 23 will be partly reinvested on the market.

"Valuations are now very attractive compared to what they were early in the year," Manibhandu said. However, "going forward, for sustainability you need to see crude prices not fall much from where they are now."

Abu Dhabi's index rose 2.6 percent and Oman's bourse edged up 0.2 percent. Qatar inched up 0.1 percent and Kuwait edged down 0.4 percent.

For all the latest market news from the UAE and Gulf countries, follow us on Twitter and Linkedin, like us on Facebook and subscribe to our YouTube page, which is updated daily.

Subscribe to our Newsletter

Subscribe to Arabian Business' newsletter to receive the latest breaking news and business stories in Dubai,the UAE and the GCC straight to your inbox.