DUBAI: Stock markets in the United Arab Emirates and Qatar fell in early trade on Tuesday as some blue chips went ex-dividend and investors sold oil-linked shares.
On Monday Gulf stock markets started to show signs of weakness as investors booked profits and oil fell below $40 a barrel. Brent oil futures have continued to edge down on Tuesday morning in Asia.
Abu Dhabi’s benchmark dropped 2.5 percent as the largest listed bank on the bourse, First Gulf Bank, traded ex-dividend; it fell 9.7 percent.
Other blue chips also sold off; Union National Bank , which went ex-dividend on March 10, fell 4.8 percent. Last month the lender announced that it had trimmed its 2015 cash dividend from the prior year.
In Qatar, the index fell 1.2 percent; Qatar Gas Transport and drilling rig provider Gulf International Services declined 6.3 and 1.5 percent respectively. The largest listed bank by market value, Qatar National Bank , fell 1.9 percent.
Dubai’s index initially rose before pulling back as investors sold mid-caps. The index was down 0.3 percent after 75 minutes of trade.
Builder Arabtec and Dubai Parks, two shares which have been caught in heavy and volatile trade over the past several sessions, continued to attract high volumes. Arabtec dropped 1.8 percent while Dubai Parks fell 2.2 percent.
Copyright Reuters, 2016
Courtesy : BRecorder