Oil disappoints Gulf stock markets again
Gulf stock markets continue to stay in negative territory after opening lower on Wednesday (February 10) in response to an overnight drop in oil prices.
Dubai’s index was 0.8 percent down at midday trade as shares of real estate firms Emaar Properties and Arabtec Holding fell by 1.8 per cent and 0.9 per cent, respectively. However, another property firm Deyaar Development and Gulf General Investments Company (GGICO) rose 4.5 per cent and 7.1 per cent respectively.
Abu Dhabi’s general index lost 0.4 per cent as First Gulf Bank fell by 0.4 per cent, although RAK Properties jumped by 8.2 per cent and was Abu Dhabi’s most heavily traded stock after its reported 2015 profit rose to AED160 million from AED156m in 2014. For the first nine months of the past year, profit had dropped.
Qatar dropped by 0.8 per cent as drilling rig provider Gulf International Services sank 3.9 per cent and Barwa Real Estate, the most heavily traded stock, dropped by 1.9 per cent. However, another real estate firm, United Development, rose 1.1 percent.
Kuwait Stock Exchange’s main index lost 0.4 per cent, while the Muscat bourse dropped 0.1 per cent.
Bahrain All Share Index was down by 0.2 per cent, but Al Salam Bank rose by 2.5 per cent after it recommended a cash dividend of 5 fils per share for 2015, unchanged from the previous year despite a 33 per cent drop in annual net profit.
Brent crude oil settled at $30.32 a barrel, down by $2.56 or 7.8 per cent, after weak demand forecasts from energy watchdog International Energy Agency (IEA) on Tuesday.
(With inputs from Reuters) ($1 = AED3.67, at the time of publishing)