Dubai Shares Fall Most in Week on Oil Drop, Eid; Egypt Advances
Dubai shares lost the most in almost a week before the start of the Muslim Eid holidays next week and after oil fell following a slowdown in China’s export growth.
Air Arabia PJSC (AIRARABI), the Middle East’s biggest discount airline, slumped the most since April 18 after rallying 3.3 percent last week. Aramex PJSC (ARMX), which competes in the Middle East with Deutsche Post’s DHL and United Parcel Service Inc. (UPS), fell the most since June. The DFM General Index (DFMGI) slipped 0.3 percent, the biggest drop since Aug. 6, to 1,568.38 at the close in Dubai. The index advanced 1.4 percent last week. Egypt’s EGX30 Index (EGX30) rose 0.2 percent.
The drop in Dubai’s market is “an interim technical correction before the Eid holiday,” said Nabil Farhat, a partner at Abu Dhabi-based Al Fajer Securities. “The market will most likely see a pick-up after Ramadan ends, if not earlier.”
The Islamic holy month of Ramadan, when Muslims fast from sunrise to sunset and business activity slows, began July 20. About 68 million shares traded in Dubai today, compared with a twelve-month daily average of 139 million. Persian Gulf states will celebrate the Eid holiday, which marks the end of Ramadan, next week, with Saudi Arabia (SABIC)’s market closing for business from Aug. 18 through Aug. 22.
Oil for September delivery slipped 0.5 percent to $92.87 a barrel on Aug. 10 in New York after the International Energy Agency cut demand forecasts. China’s customs bureau reported outbound shipments increased 1 percent in July from a year earlier, after an 11 percent rise in June. It was the worst export growth since 2009. Gulf Arab oil exporters, including Qatar and the U.A.E., supply about a fifth of the world’s oil.
Air Arabia fell 3 percent to 64 fils. The company last week reported a 31 percent increase in second-quarter profit. Aramex decreased 2.2 percent, the most since June 21, to 1.79 dirhams.
Saudi Arabia’s Tadawul All Share Index (SASEIDX) gained 0.1 percent, while the Bloomberg GCC 200 Index (BGCC200) of Persian Gulf stocks and Bahrain’s BB All Share Index (BHSEASI) were little changed. Kuwait’s measure lost 0.4 percent and Qatar’s QE Index (DSM) fell 0.1 percent. Abu Dhabi’s gauge and Oman’s MSM 30 Index (MSM30) rose 0.2 percent.
Renaissance Services SAOG (RNSS) gained the most since May 22, advancing 1.8 percent to 0.451 rial, after the Omani provider of services to the oil and gas industry said its Topaz Energy and Marine Ltd. unit won two long-term charters valued at more than $65 million.
Israel’s benchmark TA-25 Index (TA-25) declined 0.6 percent. The yield on the 5.5 percent benchmark Mimshal Shiklit government bonds due January 2022 rose three basis points, or 0.03 percentage point, to 4.2 percent.
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