MIDEAST STOCKS-UAE markets fall on concerns of global economic slowdown

Kitco Media
By Reuters
Published:
Updated:
Reuters
By Mohd Edrees May 12 (Reuters) - Stock markets in the United Arab Emirates closed in the red on Friday, tracking global equities after economic data from the U.S. and China fuelled concerns of a global slowdown. U.S. jobless claims jumped to a 1-1/2-year high last week, while producer prices rebounded modestly in April, suggesting a slowing economy. Meanwhile, a decline in new loans to businesses in China and weaker economic data earlier in the week, are adding to worries that the country's post-pandemic recovery is losing steam. The Abu Dhabi benchmark index dropped 0.4%, extending declines from the previous session, with state-owned firm Adnoc Gas Plc falling 2.1%, while investment firm Multiply Group PJSC slipped 1%. Bucking the trend, IHC -owned Alpha Dhabi Holding PJSC rose 0.6% after the firm picked up a 36.4% stake in National Corp for Tourism & Hotels in a 730 million dirhams ($198.8 million) deal. Dubai's benchmark index settled 0.3% lower, weighed by losses in utilities and communication sector stocks, with most stocks trading in negative territory. Dubai telco Emirates Integrated Telecommunication dipped 1.7% and low-cost carrier Air Arabia PJSC lost 1.3%. However, Dubai-based real estate heavyweight Emaar properties PJSC gained 1.2% as the developer recorded a 43% jump in first-quarter net profit to 3.2 billion dirhams. The Dubai stock market continues to record price corrections, with traders becoming increasingly cautious in reaction to mitigated earnings reports locally and unceasing concerns about the health of the U.S. banking sector, said Fadi Reyad, Chief Market Analyst at CAPEX.com MENA. ABU DHABI lost 0.4% to 9,635 DUBAI down 0.3% at 3,559
($1 = 3.6717 UAE dirham) (Reporting by Mohd Edrees in Bengaluru; Editing by Sonia Cheema)

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