Ramadan effect weighs on Mideast markets as trading slows

DUBAI. KAZINFORM - Stock Markets in the Middle East moved less than half a percent on the first Sunday during the month of Ramadan, when Muslims fast from dawn till dusk and working hours are reduced.

"Foreign investors are absent and local investors are either out of the country or taking it easy," Muhammad Shabbir, the head of equities at Rasmala Investment Bank Ltd., said by phone from Dubai. "It's very hard for local investors to find energy to invest." Dubai's DFM General Index declined 0.4 percent to the lowest since June 9 at 11:05 a.m. local time, while Abu Dhabi's ADX General Index advanced 0.3 percent. It's poised to close with a move of less than 1 percent for a 16th day. Seventeen out of 35 stocks on Dubai's index were unchanged, the most on a closing basis since August, while 48 companies were unchanged on Abu Dhabi's gauge, the most since March 12. Trading in United Arab Emirates equities had already slowed before Ramadan's start on Thursday in the absence of any catalysts to move shares. While stocks including Amlak Finance PJSC and Arabtec Holding Co. helped boost volumes in Dubai, some analysts said there was little logic behind the moves as Amlak shares doubled in value in about a week. Qatar's QE Index added 0.1 percent and Oman's MSM 30 Index fell 0.1 percent. Source: Bloomberg