UAE- Most Mideast stocks slip on Opec's decision
Date
12/7/2015 11:32:00 PM
Dubai
Stocks fell to a three-week low leading declines in most Middle Eastern markets after the Opec decided to forgo an output reduction that might have propped up oil prices and eased the pressure on the region's export revenues. Abu Dhabi equities dropped the most in a week. Shares in the Middle East are catching up with Friday's losses across emerging markets after the Organisation of
petroleum Exporting Countries kept production at about 31.5 million barrels a day amid a glut in global oil supply. "The
market is going to continue to see some selling pressure this week"as the Opec's decision will continue to damp sentiment said Saleem Khokhar who manages about $2.5 billion as head of equities at the asset management group of National Bank of Abu Dhabi or NBAD the UAE's biggest bank. "The banking sector has been pretty aggressively sold so we do see some real value there although take on board it's going to be a soft economy next year." The DFM General Index retreated 0.9 per cent to 3174.34 points led by Dubai Islamic Bank the second-largest weight on the gauge which declined the most since August. The ADX General Index fell 0.9 per cent to 4198.87 points. NBAD has fallen 37 per cent this year more than five times the drop in Abu Dhabi's gauge. Brent crude a pricing benchmark for half the world's oil dropped near a six-year low on Friday as the new output implied that the earliest the Opec can consider reducing production is June. The UAE home to about six per cent of the world's proven oil reserves relies on income from crude to help fund government spending. Saudi Arabia's Tadawul All Share Index slipped 0.1 per cent led by Jabal Omar Development which builds accommodations for pilgrims to the holy city of Makkah. Kingdom Holding rose to an August high after a French fundand several unnamed companies bought a $150 million stake. Bahrain stocks were little-changed. Fitch Ratings downgraded the outlook on the island country to negative citing falling oil prices and insufficient policy measures to mitigate its impact. Stocks inEgyptadvanced 0.9 per cent for a fourth day of gains the gauge's longest rally since October. Kuwait equities rose 0.1 per cent while Qatar's QE Index added 0.2 per cent. Oman's gauge fell 0.3 per cent while Iranian stocks retreated 0.3 per centaccording to data on the Tehran Stock Exchange website.
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