Oil fails to lubricate markets

Markets Wrap: Drake & Scull International rises after the contractor based in Dubai announces it had been awarded Dh96 million worth of contracts in Oman.

Drake & Scull International rose yesterday after the contractor based in Dubai announced it had been awarded Dh96 million worth of contracts in Oman.

The company said it would oversee the complete mechanical, electrical and plumbing works, according to a statement it filed on the Dubai Financial Market (DFM) website recently.

DSI’s shares advanced 0.3 per cent to 80 fils. Trading was subdued on the DFM as oil declined and most investors bet the UAE would not be upgraded to emerging markets from its current frontier markets status by MSCI.

“The UAE markets rely on prices of oil and the impact that high oil has on liquidity in the UAE and the banking sector, or the extent that Dubai can pay its upcoming debts with ease,” said Rakan Himadeh, an assistant fund manager at Al Mal Capital in Dubai.

Brent for August delivery fell 73 cents to US$95.32 a barrel in early morning trading on the London-based ICE Futures Europe Exchange.

The DFM General Index added 0.3 per cent to 1,479.20.

In the capital, the Abu Dhabi Securities Exchange General Index gained slightly, rising 0.3 per cent to 2,467.97.

Elsewhere in the region: Kuwait’s measure was little changed at 5,945.08; Bahrain’s index slipped 0.1 per cent to 1,128.70; Oman’s MSM 30 Index lost 0.1 per cent to 5,700.24; Qatar’s QE Index added 0.4 per cent to 8,314.

Meanwhile, the Saudi Tadawul All-Share Index moved 0.1 per cent to 6817.26.

twitter: Follow and share our breaking business news. Follow us

iPad users can follow our twitterfeed via Flipboard - just search for Ind_Insights on the app.