Shares in Abu Dhabi hit their lowest level in more than three months on Sunday, as concerns of a strengthening US dollar weighed on stocks across the Arabian Gulf.
The capital’s headline index fell for its sixth day in a row on Sunday, closing down 1.13 per cent at 4,187,59, its lowest level since mid-February, as the prospect of a rise next month in US interest rates took its toll on emerging market shares.
“Throughout emerging markets the mood is negative because of the perceived stronger dollar, resulting in outflows and very few bids,” said Julian Bruce, the head of institutional trading at EFG-Hermes in Dubai.
“Add that to other factors such as Ramadan coming up and expected outflows from MSCI Emerging Market stocks at the end of the month means there’s little buying incentive.”
Etisalat and NBAD led the sell-offs of big-name stocks in the capital on Sunday, closing off 2.56 and 3.1 per cent respectively.
Julphar was one of a handful of gainers on the Abu Dhabi bourse, rising by 1.33 per cent to Dh2.29 a share, despite the Ras Al Khaimah pharmaceuticals group announcing a 17.4 per cent drop in first-quarter profit.
Shares in Dubai closed 0.66 per cent lower at 3,208.52, owing to falls from big names including Emaar Properties and Emaar Malls.
Dubai Parks and Resorts was the pick of just five gainers on the Dubai bourse, rising 1.59 per cent to Dh1.28, ahead of the closing of the company’s Dh1.68 billion rights issue on Wednesday.
jeverington@thenational.ae
Follow The National's Business section on Twitter