Dubai’s main stock index tumbled on Tuesday in response to a fresh drop in oil prices, but reduced its losses and held above major technical support after oil came off its lows.
The benchmark closed 3.5 per cent down at 3,889 points, well above its intra-day low of 3,761 points. It held its July low of 3,731 points.
Developer Emaar Properties, the emirate’s largest listed firm, dominated trading and closed 3.6 per cent down at Dhs8.02, off its intra-day low of Dhs7.50.
The sell-off in Dubai and across the region came after the price of Brent crude hit a new five-year low of $65.33 per barrel. However, the commodity steadied later in the day and climbed above $66 by the time Dubai closed.
Other stock markets in the region were not hit as hard as Dubai.
“As long as there is volatility in the oil market, you are going to see these ups and downs in the stock market,” said Asim Bukhtiar, head of research at Saudi Arabia’s Riyad Capital. “Investors want to see some stability in oil prices.”