Dubai Financial Market edges down as oil hovers around $48

Abu Dhabi Securities Exchange closed higher, led by financial stocks.

Dubai equities edged lower on Wednesday amid an absence of investor interest as oil prices hovered around US$48 a barrel.

“Are we surprised? Not really as long as the oil price is trading in a narrow trading range between US$45 and $55 a barrel and now it’s reflected in the UAE equity market,” said Sebastien Henin, head of asset management at The National Investor in Abu Dhabi.

Arabtec Holding, the biggest publicly listed company, declined 1.9 per cent to three dirhams a share. Dubai developer Emaar Properties slipped 1.4 per cent to Dh7.45 a share. Damac, another developer, lost 4.4 per cent to Dh2.16.

The Dubai Financial Market General Index declined 0.7 per cent to 3,849.92 points.

“As long as oil prices stay well below the budget break-even point, we shouldn’t expect the market to rebound sharply in coming sessions,” Mr Henin said.

The UAE’s break-even point is $81.3 , according to Standard & Poor’s, while Abu Dhabi’s is $45 according to Capital Economics.

Financial stocks led the gains on the Abu Dhabi Securities Exchange.

Abu Dhabi Islamic Bank rose 1.9 per cent to Dh6.32. First Gulf Bank gained 1.2 per cent to Dh16.85. Finance House jumped 10.7 per cent on low volumes to Dh3.49.

The Abu Dhabi Securities Exchange General Index was up 0.3 per cent to 4,543.48 points.

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