UAE markets mixed in early trading, Abu Dhabi falls 2%

Abu Dhabi Securities Exchange's (ADX) main index fell 2.23 percent 30 minutes into trading Tuesday, while Dubai nudged up 0.22 percent.

First Gulf Bank dropped more than 9 percent to AED 12.10 within 20 minutes after trade began on the ADX. The last day to receive 100 percent cash dividend was yesterday. Meanwhile, the bank’s CEO said last week he sees low single-digit growth in loans and revenues as a “best case scenario.” Banks in the UAE have reportedly been facing a liquidity crunch.  

Abu Dhabi Commercial Bank was down 0.45 percent to AED 6.67. The bank approved a 45 percent cash dividend for fiscal year 2015 and total bonuses of AED 7.625 million for the board of directors.

Dubai-listed GFH Financial Group slipped 1.94 percent to AED 0.76. The company was ordered to pay a $2.1 million and $10,600 in legal fees to Kuwait Finance and Investment Company (KFIC).

Oil and global markets

Oil prices continue to swing as concerns of oversupply remain. Brent crude last traded down 0.81 percent to $39.21 per barrel (bbl), while WTI crude was down 0.75 percent at $36.90/bbl.

Asian stocks reversed their advance from the previous session with China’s Shanghai composite index down 0.84 percent to 2,835 points as the market neared closing hours.

Japan’s Nikkei fell 0.84 percent to 17,089 points. The Bank of Japan kept interest rates unchanged at -0.1% at its policy review meeting that ended Tuesday. The monetary base was also maintained at a target of JPY 80 trillion.

Dow Jones closed Monday with a gain of 0.09 percent to 17,229 points and Nasdaq was up 0.04 percent to 4,750 points. Europe’s Euro Stoxx 50 index rose 0.59 percent to 3,092 points. The U.S. Federal Reserve is scheduled to meet Wednesday.

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

Nadeshda Zareen at nadeshda.zareen@argaamplus.com