Dubai, Qatar stocks slip; Abu Dhabi more resilient

Abu Dhabi’s index rose slightly while Qatar and Dubai again fell in thin trade on Thursday as foreign investors reduced their exposure to Gulf markets.

The sustained slump in oil prices has hurt state finances in the Gulf and soured sentiment among both regional and foreign traders, with government spending a major factor in determining private sector profitability.

Qatar’s bourse slid 0.2 percent to 10,003 points, extending losses after slumping to its lowest close in 25 months on Wednesday.

“A close on the day above 10,160 might have an effect of a bounce,” Doha-based QNB Financial Services wrote in a note, adding there is no change in the main trend which remains negative.

Industries Qatar and Qatar National Bank (QNB), two index heavyweights, dropped 2.3 and 0.6 percent respectively.

Foreign investors were heavy sellers in Doha on Wednesday, bourse data showed. Qataris were net buyers, picking up stocks at lower prices.

Dubai’s benchmark slid 0.4 percent. It was up in early trade but has now slipped below Wednesday’s close, its lowest in two years.

Abu Dhabi’s index climbed 0.3 percent in early trade, steadying after two days of declines.

Abu Dhabi Commercial Bank (ADCB) and National Bank of Abu Dhabi (NBAD), the two of the UAE capital’s three largest banks by market value, buoyed the bourse. They increased 1.4 and 1.3 percent respectively.

Source: Reuters