Bourses in the United Arab Emirates edged up in early trade on Thursday in line with global markets, but Abu Dhabi then pulled back on low trading volume.
Dubai’s index added 0.4 per cent. Emaar Properties, also up 0.4 per cent, was the main support. Abu Dhabi’s benchmark slipped 0.1 per cent after gaining 0.3 per cent earlier in the session.
Volumes remained low on both exchanges as many retail investors have yet to return to the markets after the Muslim holiday of Eid al-Adha, and many other bourses in the Middle East remain closed until next week.
Markets across the region fell on Wednesday as global equities came under pressure from worries about economic growth. But indications that the U.S. Federal Reserve may be cautious about hiking interest rates triggered an overnight turnaround on major global markets.
Also, the price of Brent crude oil rose off Wednesday’s two-year low as the U.S. dollar weakened. While oil prices are not expected to have much direct impact on the UAE economy, as the government has ample reserves to maintain high state spending, they may affect investor sentiment.