Stock markets in the UAE closed in the red yesterday, tracking global equities after economic data from the US and China fuelled concerns of a global slowdown.
US jobless claims jumped to a 1-1/2-year high last week, while producer prices rebounded modestly in April, suggesting a slowing economy.
Meanwhile, a decline in new loans to businesses in China and weaker economic data earlier in the week, are adding to worries that the country’s post-pandemic recovery is losing steam.
The Abu Dhabi benchmark index dropped 0.4 per cent, extending declines from the previous session, with state-owned firm Adnoc Gas Plc falling 2.1pc, while investment firm Multiply Group PJSC slipped 1pc. Bucking the trend, IHC-owned Alpha Dhabi Holding PJSC rose 0.6pc after the firm picked up a 36.4pc stake in National Corp for Tourism and Hotels in a 730 million dirhams ($198.8m) deal.
Dubai’s benchmark index settled 0.3pc lower, weighed by losses in utilities and communication sector stocks, with most stocks trading in negative territory. Dubai telco Emirates Integrated Telecommunication dipped 1.7pc and low-cost carrier Air Arabia PJSC lost 1.3pc.
However, Dubai-based real estate heavyweight Emaar properties PJSC gained 1.2pc as the developer recorded a 43pc jump in first-quarter net profit to 3.2 billion dirhams.
The Dubai stock market continues to record price corrections, with traders becoming increasingly cautious in reaction to mitigated earnings reports locally and unceasing concerns about the health of the US banking sector, said Fadi Reyad, chief market analyst at CAPEX.com Mena.
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