UAE Stocks: Key factors to watch

The Dubai Financial Market’s general index fell 2 percent within the first 30 minutes of trade, wiping out yesterday’s gains, while the Abu Dhabi Securities Exchange (ADX) opened 0.43 percent lower as Asian shares slumped.

Argaam has compiled a list of local and global developments that are likely to impact local stocks.

Oil prices gained some strength on Tuesday, after declines over previous sessions. The global benchmark Brent crude was nearing $33 a barrel a half hour before markets opened in the United Arab Emirates. West Texas Intermediate (WTI) was slightly above $30.

Japan’s Nikkei fell more than 5 percent to 16,088 points on worries in the global economy. Markets in mainland China, Hong Kong and Taiwan are still closed for holiday. Asia is a strategic trading partner for the UAE.

US markets suffered during Monday’s session on fears of a global economic slowdown. Dow Jones lost more than 1 percent, while Nasdaq fell 1.8 percent to 4,284 points.

As for regional news, Ruler of Dubai and UAE Prime Minister Sheikh Mohammed bin Rashid Al Maktoum on Monday revealed plans of a government shakeup that will include the privatization of most government services.

Kuwait Food Co. (Americana) has started a process to sell a 69 percent stake to Adeptio, a Gulf Arab investor group led by Mohamed Alabbar, chairman of Dubai-based Emaar Properties.

Abu Dhabi Securities Exchange

Dana Gas plunged 2.08 percent to AED 0.47. Abu Dhabi Ship Building fell 8.72 percent. All sectors are in the red.

Dubai Financial Market

Arabtec Holding fell 1.72 percent to AED 1.14 within 30 minutes of trade. The company postponed a board meeting that was to review the financial statements for 2015 to February 11, due to lack of quorum.

Trading on United Foods Company shares are suspended starting from 11:00 am for a board meeting and until results are disclosed.

Dubai Insurance Co. reported a profit of AED 35.1 million in its audited results for fiscal year 2015, an increase of 17 percent year-on-year.

Dubai Islamic Bank fell 2.17 percent shortly after the market opened. The UAE’s largest sharia-compliant bank is seeking to raise its core capital by $750 million to $2.75 billion through sharia-compliant bonds. Shareholders will vote on March 1.

Write to Matthew Watson at matthew.w@argaamplus.com and

Nadeshda Zareen at nadeshda.zareen@argaamplus.com