DFM led Gulf lower on oil; Drake & Scull falls

Dubai’s benchmark stock index led declines in the Gulf as oil dropped and US government data showed that orders placed with factories for durable goods rose less than economists estimated.

Published: Fri 30 Mar 2012, 3:32 PM

Last updated: Tue 7 Apr 2015, 11:57 AM

Islamic Arab Insurance, an insurance provider, slumped the most since March 8. Drake & Scull International, a construction company, declined for the first time this week. The DFM General Index lost 1.1 per cent to 1,663.91 at 11:31 a.m. in the emirate, trimming this year’s rally to 23 per cent. Abu Dhabi’s ADX General Index retreated 0.6 per cent.

“The external backdrop is not conducive to the continuation of Dubai momentum,” said Julian Bruce, the Dubai- based director of institutional sales trading at EFG-Hermes Holding SAE. Oil traded near the lowest close in almost a week in New York after U.S. inventories surged and Western countries discussed tapping emergency reserves. Oil for May delivery was at $105.34 a barrel, down eight cents, in electronic trading on the New York Mercantile Exchange in Dubai. The Gulf Cooperation Council, an alliance of Saudi Arabia, the UAE, Qatar, Bahrain, Kuwait and Oman, has one-fifth of the world’s proven crude oil reserves.

In the US, a Commerce Department report showed that bookings for goods meant to last at least three years advanced 2.2 per cent in February, less than projected after a revised 3.6 per cent decline the prior month. The MSCI Emerging Markets Index fell 0.8 per cent, while the Stoxx Europe 600 Index declined 0.3 per cent. Islamic Arabic Insurance tumbled 6.5 per cent to 83.2 fils. Drake & Scull lost one per cent to Dh1.03.

The Bloomberg GCC 200 Index fell 0.1 per cent. Kuwait’s SE Price Index retreated 0.2 per cent and Oman’s MSM30 Index declined 0.2 per cent. Qatar and Bahrain’s measures were little changed. Saudi Arabia’s stock market was closed for the weekend. — Bloomberg

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