UAE stocks extend losses on economic slowdown fears

An investor walks through the Dubai financial market after Joe Biden won the U.S. presidency on November 8, 2020 in Dubai, United Arab Emirates. REUTERS/Christopher Pike

July 1 (Reuters) – Shares in the United Arab Emirates ended lower on Friday, tracking Asian shares, as worries about a global economic slowdown weighed on investor sentiment.

Central bankers from the U.S. Federal Reserve, the European Central Bank and the Bank of England met in Portugal on Wednesday and reaffirmed their commitment to rein in inflation, no matter how painful it may be. read more

Dubai’s main stock index (.DFMGI) Down 0.7%, pressured by declines in financial stocks as top lender UAE NBD (ENBD.DU) Down 3%, Shariah-compliant lender Dubai Islamic Bank (DISB.DU) It fell 2.1%.

Fadi Reyad, market analyst at CAPEX.com MENA, said the market could extend losses due to volatility in the Dubai stock market as investors talk about a recession, especially in the U.S.

In Abu Dhabi, stocks (.FTFADGI) Down 0.3%, falling for a third session in a row, dragged by Alpha Dhabi Holding’s 3.2% decline (Alpha Habi.AD)while Ghitha Holdings (GHITHA.AD) It fell 4.3%.

The Abu Dhabi index rose 1.2% for the week.

Separately, Indonesia and the United Arab Emirates signed a free trade agreement on Friday, strengthening economic ties between Southeast Asia’s largest economy and the Gulf’s main oil producer.

Reporting by Mohd Edrees in Bengaluru; Editing by Vinay Dwivedi

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