Business

UAE, GCC equity markets plunge over US oil price fall

UAE, GCC equity markets plunge over US oil price fall

The UAE and other Gulf equity markets plummeted on Tuesday after an unprecedented fall in the US oil price the previous day.

Dubai Financial Market was down 2.3 per cent 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 per cent to 3,894 points, pushed down by banking stocks. First Abu Dhabi Bank and Abu Dhabi Islamic Bank shares were down 3.44 per cent and 3.2 per cent, respectively.

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

US oil prices hobbled back into positive territory on Tuesday 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 11.10am UAE time after settling down at a discount of $37.63 a barrel in the previous session.

Among other regional bourses, Saudi Arabia's Tadawul slumped 1.5 per cent within few minutes of opening the trade. Kuwait's index declined two per cent while Muscat Securities Market dropped 0.6 per cent in early trade. Bahrain and Qatar bourses also opened lower. Qatar slipped 1.1 per cent while Bahrain dipped marginally on Tuesday.

[email protected]