Profit-taking affected UAE bourses amid quarterly earnings with oil markets inching back up from lows a week ago.
The price of Brent crude, the international benchmark, rose above US$45 per barrel in midday trading on Tuesday, an 8 per cent hike from lows last Tuesday at $41.80.
UAE energy companies including Dana Gas and the Abu Dhabi National Energy Company (Taqa) led what gains there were on Abu Dhabi’s ADX.
Taqa had a 3.7 per cent increase in share prices, while Sharjah-based Dana Gas, which will announce its second-quarter earnings tomorrow, closed up 1.7 per cent. That did not stop the ADX from edging lower in total volume, ending at 4,533.79.
In Dubai, Aramex stocks dipped by 1.2 per cent to Dh3.95 after rallying earlier this month on news that Fadi Ghandour, the co-founder and vice chairman, had sold a 9.9 per cent stake in the company. With the previous month resulting in sharp gains, it is natural to have traders and investors take profits while the stock is up, said Sebastien Henin, the head of asset management at The National Investor, an Abu Dhabi boutique investment bank.
“Aramex was up almost 25 per cent in July, so it was expected to have this profit-taking,” he said.
The Dubai Financial Market General Index still made gains in trading, closing up by 0.3 per cent, at 3,521.89.
“The market is in a normal ‘summer’ session. Investors have deserted the market and at the same time, there’s not really any news locally or internationally,” said Mr Henin.
“So there are no reasons for investors to take some positions in the current environment.”