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UAE stocks closed lower yesterday, tracking global stock markets, after economic data from the United States and China fueled fears of a global economic slowdown.
The number of Americans filing new claims for jobless benefits jumped to a 1-1/2-year high last week, while producer prices rebounded modestly in April, pointing to a slowing economy.
Meanwhile, lower new loans to Chinese companies and weak economic data earlier in the week fueled concerns that the country’s post-pandemic recovery is losing steam.
Abu Dhabi’s benchmark index fell 0.4 percent, extending losses from the previous session, with state-owned firm Adnoc Gas Plc down 2.1 percent and investment firm Multiply Group PJSC down 1 percent. IHC’s Alpha Dhabi Holding PJSC bucked the trend and rose 0.6 percent after it bought a 36.4 percent stake in National Corp for Tourism and Hotels for 730 million dirhams ($198.8 million).
Dubai’s benchmark index ended 0.3% lower, dragged down by losses in the utilities and communications sectors, with most stocks trading lower. Emirates Integrated Telecommunications fell 1.7 percent and low-cost carrier Air Arabia PJSC fell 1.3 percent.
However, Dubai-based real estate giant Emaar properties PJSC rose 1.2 percent after the developer’s first-quarter net profit rose 43 percent to AED3.2 billion.
Fadi Reyad, chief market analyst at CAPEX.com Mena, said Dubai stocks continued to see a price correction, with traders becoming increasingly cautious over weaker local earnings reports and ongoing concerns about the health of the US banking sector.
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