Dubai equities were poised to extend the longest losing streak in more than two months after oil languished near $40 a barrel. Stocks in the six-nation Gulf Cooperation Council also fell.
The DFM General Index lost 0.9 percent to 3,288 as of 11:43 a.m. local time. Emaar Properties PJSC was the biggest contributor to the declines with a 1.5 percent drop. Shuaa Capital PSC bucked the trend and advanced 2.4 percent as traders exchanged 21 million shares, about 15-times the six-month intraday average.
“There are worries of some technical exhaustion given the strong market rally in recent weeks, and softer oil last week isn’t helping either,” said Akber Khan, who manages $850 million as senior director of asset management at Al Rayan Investment in Doha.
Dubai stocks are paring gains following a 30 percent surge from a recent low in January as retreating oil prices prompt investors to lock in profits. GCC countries, home to about 30 percent of the world’s crude, rely on income from energy to fund spending. Brent crude posted its first weekly decline in five on Friday.
Abu Dhabi’s ADX General Index lost 0.3 percent. The main gauges in Qatar and Kuwait declined 0.2 percent and 0.5 percent, respectively. Bahrain’s measure slid 0.4 percent, while Oman’s MSM30 Index fell 0.1 percent.