What is up with indexes of the United Arab Emirates amidst global muted sentiment?

There has been slight edging up of the benchmark index on the stock exchange of Dubai on Wednesday, whereas, in Abu Dhabi, the main index turned out to be flat, just as markets across the world were highly muted in advance of Thanksgiving.

The President of the United States, Mr. Trump stated that Beijing and Washington were in the final point of agreeing to sign an initial trade deal between the two economies. But, restrained trading of stocks across the world resulted in the investors not impressed and on the pursuit of finding definite signs of trade relations getting better.

The MENA Economist at Emirates NBD, Daniel Marc Richards passed a statement saying that the investors will probably be interested in seeing more solid developments rather than an off-the-cuff statement from a President who is pressurized due to home, as well as, desperately waiting for good news.

There was a rise in the Dubai Financial Market (DFM) index, on the local front, by 0.2 percent. The index came out to be higher at 2,711 points, whereas Abu Dhabi’s ADX remained almost the same at 5,043 points.

In Dubai, the index was powered by gains from financials, with an increase of gain of 1.7 percent by Dubai Islamic Bank and a rise of 1.2 percent by Emaar Properties. Nevertheless, gains were covered by around 1 percent drop by top lender Emirates NBD.

Declines were recorded by other regional stock markets which as stated by various analysts was on account of passive fund outflows subsequent to the rebalancing of the MSCI Emerging Markets index.

It was said by MSCI, the global index provider on Tuesday that it will be making the addition of 200 more Chinese firms with A-shares listed on the mainland to its developing markets benchmark, in a report that was eyed closely by region-wide investors this week.