UAE, GCC investment markets dive over US oil price drop

By Backend Office, Desk Reporter
    Representational Image

    The UAE and other Gulf investment markets have plummeted today after an abnormal fall in the US oil price the previous day.

    Dubai Financial Market was down 2.3 percent with 26 out of 28 scrips trading in the negative territory. The decline was led by Dubai Islamic Bank, Emaar Properties, Gulf Navigation, Damac Properties, and Amanat.

    Abu Dhabi index slipped 1.9 percent to 3,894 points, pushed down by banking stocks. First Abu Dhabi Bank and Abu Dhabi Islamic Bank shares were down 3.44 percent and 3.2 percent, respectively.

    The US oil prices plummeted into the negative territory due to oversupply and storage issues yesterday, pushing US equity markets also down. The Dow tumbled 2.4 percent, S&P 500 slipped 1.8 percent and technology-laden Nasdaq shed 1.2 percent.

    US oil prices limped back into positive territory today after sinking below $0 for the first time ever, but international benchmark Brent dipped as the global coronavirus crisis severely reduces demand for crude.

    US West Texas Intermediate (WTI) crude for May delivery was up $37.7 in thin trade at $1.0 a barrel by 11.10 am UAE time after settling down at a discount of $37.63 a barrel in the previous session.

    Among other regional markets, Saudi Arabia’s Tadawul collapsed 1.5 percent within a few minutes of opening the trade. Kuwait’s index declined two percent while Muscat Securities Market dropped 0.6 percent in early trade. Bahrain and Qatar bourses also opened lower. Qatar slipped 1.1 percent while Bahrain dipped marginally today.

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