Investors on the Dubai stock exchange’s trading floor clapped hands during the first hour of trading or so, when the DFM General Index surged more than 4.4 per cent after its worst performance since 2008 in the last two trading sessions.
But the euphoria about the rebound was short-lived as the index eventually lost steam and closed with a small plus of 0.13 per cent at 3,325.49 points on Monday, December 15.
Emaar advanced by 2.26 per cent to close at AED6.80.
Oil prices slightly stabilised at $60.19 (DME Oman crude futures), improving the sentiment somewhat in the GCC. Health and education firm Amanat, which went public last month, gained the most, ending 7.60 per cent to reach AED0.85. But investors say they were burnt despite the wave of new listings.
“Only Emaar Malls Group and Marka generated value shortly after their listings, but the unlucky timing for the listings of Amanat and Dubai Parks and Resorts was not paying off at all,” said one Emirati investor.
Bank Emirates NBD lost the most, finishing 9.64 per cent lower at AED6.75. Emirates NBD chief economist Tim Fox said at the end of November in the lender’s “Monthly Insights” that the fall of oil prices to a 5.5-year low was mostly affecting the Saudi Tadawul market, but even markets less dependent on oil like Dubai is felt “as Saudi investors rotate funds out of other regional markets amid weakness in their home market.”
During Q3 and Q4, the Tadawul market erased all gains since January 2014 parallel to the oil price crash.