Local markets failed to sustain early gains yesterday and ended in the red as cautious investors sold on worries that more UAE companies faced debt problems. The markets rallied early in the session taking a lead from a positive close of the Saudi Tadawul on Saturday, up 5.4 per cent to 6,175.96, and a rebound in oil prices over the weekend. But sellers played safe after Dubai International Capital (DIC), a Dubai Holding entity, said on Thursday it had asked for a three-month extension on selected debts.
The Dubai Financial Market General Index dropped 0.3 per cent to 1,601.24 with Emirates NBD declining 1.8 per cent to Dh2.75. Emaar Properties and Arabtec Holding, which led the earlier gains, closed flat. Tabreed, the district cooling company declined 4 per cent to Dh0.40. Tabreed on Thursday said it had missed the distribution payments on its Dh1.7 billion Islamic bonds maturing next year. Payments were due on May 19.
"The issues of leveraging are there and both sovereign and public firms are having problems, which is a concern for investors," said Hasan Awan, an associate with the asset management division at The National Investor in Abu Dhabi. "The only positive you can take from this is that they are at least coming forward and saying they have debt problems." The Abu Dhabi Securities Exchange General Index declined 0.2 per cent to 2,636.68.
First Gulf Bank and National Bank of Abu Dhabi retreated 4.2 and 2.8 per cent, to Dh15.80 and Dh10.40, respectively. Elsewhere, the Doha Securities Market rose the most adding 2.1 per cent followed by the Muscat bourse, which gained 0.2 per cent. Kuwait and Bahrain closed up with marginal gains. Saudi shares declined 1.4 per cent. Light, sweet crude oil rose more than 4 per cent over Thursday and Friday, ending the week at US$73.97 a barrel on the New York Mercantile Exchange.
skhan@thenational.ae