UAE down after oil fall; Qatar stalls drop
Dubai, May 8, 2011
UAE markets ended lower, tracking drops on other Gulf bourses as oil price declines weighed, with Dubai's index slumping to a four-week low.
Dubai's benchmark fell 1 percent to 1,592 points, its lowest finish since April 12 as all sectors retreated.
Arabtec and Emaar Properties fell 1.4 and 1.6 percent respectively, between them accounting for a third of all shares traded.
Abu Dhabi dropped 0.4 percent to 2,686 points.
Oil fell on Friday to cap a frenzied trading week that sliced prices by more than $16 on demand worries and a move by investors to slash commodities exposures.
Saudi Arabia's index made its largest drop in eight weeks on Saturday, dampening sentiment on most other Gulf markets a day later.
Most UAE bank stocks slid, despite an upbeat outlook. "There is a good momentum (in the banking sector) because of first-quarter results and we expect it to continue," says Sebastien Henin, portfolio manager at TNI National Investment.
Shares in First Gulf Bank, Abu Dhabi's second largest bank by market value, have lagged and offer potential upside, he adds. FGB shares drop 1.4 percent.
Elsewhere, Qatar's index edged up 0.07 percent to 8,458 points, ending a five-session losing streak. Qatar Telecom (Qtel) gained 2.4 percent.
Egypt's main index dropped to its lowest since March 24 after sectarian clashes near a church in a Cairo suburb lead to renewed concern that social tensions will continue weighing on tourism and investment, traders say.
The index dipped 1.5 percent to 4,863 points, with private equity firm Citadel Capital falling the most, down 5.7 percent, and high-end real estate developer Palm Hills dropping 4.2 percent. - Reuters