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Dubai flat as investors eye Q4 results

Shuaa Capital falls 3 percent and Air Arabia loses 0.4 percent.

January 9, 2011 2:13 by

Dubai’s index gives up initial gains to be almost flat, with investors wary ahead of fourth-quarter results.

Shuaa Capital falls 3 percent and Air Arabia loses 0.4 percent.

“The UAE had a strong start to the year, but perhaps came out of the gate too quickly and is likely to drift lower given the jitters in Europe,” says Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

Investors will wait for fourth-quarter results to see whether early-year UAE gains are justified, Wakeman says.

“Until we get earnings, people don’t have a lot of news on which to base their investment decisions – it’s more external factors such as the euro and oil – so unfortunately this means our markets will probably drift lower today,” Wakeman adds.

Dubai’s index falls 0.06 percent to 1,669 points. It is up 2.4 percent in 2011.

The euro fell to a nearly four-month low against the dollar on Friday after the United States reported a surprisingly strong decline in its unemployment rate.

Oil fell 0.4 percent to $88.48 a barrel on Friday after as the stronger dollar and a stock market slide erased earlier gains, and crude started the year with a weekly loss

(Reporting by Matt Smith in Dubai and Patrick Werr in Cairo; Editing by Dinesh Nair)

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