The Abu Dhabi Securities Exchange’s (ADX) general index lost 179.47 points, or 3.81%, to 4,535.26 points in a week.
Over the week, market capitalisation declined to AED 460.5 billion from AED 477.3 billion a week earlier.
The ADX’s trading volume reached 204.56 billion shares, while the market’s liquidity amounted to AED 553.358 billion.
The banks sector tumbled 4.46%, as First Abu Dhabi Bank (FAB) dropped 5.53%.
The telecommunications sector and its only stock, Etisalat, decreased by 4.18% each.
The real estate sector sank 2.65% after Eshraq Properties fell 4.23% and Aldar Properties went down 2.4%.
The decline in the Emirati markets can also be the result of domestic factors, such as profit-taking and low liquidity, Wadah Al-Taha, member of the National Advisory Board of Chartered Institute for Securities &Investments (CISI), commented.
Investors in these markets tend to collect profits hastily lest markets will tumble on the back of any possible negative news whether locally or globally, Al-Taha added.
The geopolitical tensions and the proposed reduction of oil production have weighed on investors’ morale in the last sessions, the analyst said.
Three key factors will lead to the increase of oil output including the renewal of the US sanctions on Iranian exports, the various challenges and technical problems facing Venezuela, and the ongoing conflict in Libya, Al-Taha explained.
Moreover, NamaaZone CEO Iyad Aref noted that the potential increase in interest rates in the US could drag down markets and their liquidity and increase both cost of finance and personal loans in the coming period.