Dubai index tumbles over 5 per cent with crude.
Dubai: The Dubai index extended losses for another session to lead the losses in the world as a sharp fall in crude oil dented confidence, triggering massive selling across the counters.
The Dubai Financial Market (DFM) General Index ended 5.40 per cent lower at 3,725.79, after hitting a low of 3,661.94, a level last seen in early December.
"Crude oil would continue to remain volatile. It would continue to have impact on investor sentiment," Sachin Mohindra, portfolio manager, at InvestAD told Gulf News.
Crude oil fell for a fourth day, extending losses from a five-year low amid speculation that US crude inventories will stay at the highest level since June, offering no relief from a global glut.
Oil has slumped 46 per cent this year, set for the biggest annual decline since 2008, as the highest US production in more than three decades contributed to a global surplus estimated by Qatar at 2 million barrels a day.
Saudi Arabia, which is the biggest exporter of crude oil, has said it's confident that prices will rebound as economic growth boosts demand.
Arabtec, which was the most active stock in terms of value, ended at 9.09 per cent lower at Dh2.90. Emaar Properties, which has the maximum weightage in the gauge, ended 6.53 per cent lower at Dh7.30. The stock has good support at Dh6.44, said Osama Al Ashri, member of British organisation, Society of Technical Analysts.
Drake and Scull ended Dh0.90 in trade, down 10 per cent. The stock may test support area at Dh0.83, said Al Ashri.
On the broader market, out of 34 active stocks traded on the DFM, shares of 30 companies declined.
"Liquidity would remain low in regional markets in coming sessions. I don't see more sell off in regional equities from here on," said Pradeep Unni, senior relationship manager at Richcomm Global Services.
On DFM, about more than Dh1 billion worth of shares got traded, slightly higher compared to Monday.
On Abu Dhabi, out of 31 stocks in trade, shares of 27 companies fell.
ADX index would be highly risky if it records closing price below support level of 4,278, said Al Ashri. The index ended at 4,444.03 in trade.
Eshraq Properties fell 10 per cent to be at Dh0.81. Al Buhaira National Insurance ended 10 per cent lower at Dh2.43.
Eshraq Properties may touch support area of around Dh0.80. First Gulf Bank would be under risk to record new low if registers close price of below support area of Dh15.70, said Al Ashri
Methaq Takaful Insurance ended 9.76 per cent lower at Dh0.74.
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