The Abu Dhabi Securities Exchange (ADX) extended losses on Tuesday on profit-taking in the capital's real estate stocks.

The bourse slipped 0.59 per cent to 2,610.06 with Aldar Properties tumbling 4.72 per cent to Dh1.17 and Sorouh declining 5.47 per cent to Dh1.17.

Banking stocks also dragged as the ADX slipped further back from its seven-month high on March 4. First Gulf Bank dropped 1.18 per cent to Dh20.5, Abu Dhabi Commercial Bank lost 1.53 per cent to Dh3.2 and National Bank of Abu Dhabi closed flat. Dana Gas closed at 0.49, down 3.92 per cent, as oil eased in volatile trading.

"Nobody asks any questions when the market is going up but when it drops everybody is suddenly concerned," said Anastasios Dalgiannakis, institutional trading manager at Mubasher Financial Services. "People have made a significant rally in recent weeks and there is still a lot of scope for investors to sell and take profits," he added.

Small-cap names helped stem losses with Gulf Medical Projects Company leading gains, adding 8.33 per cent to Dh1.95, and National Marine Dredging Company up 7.39 per cent to Dh9.72.

Of the 35 companies traded, seven rose, 23 fell and five closed unchanged. Some 96.4 million shares worth Dh107.9 million were traded.

Elsewhere in the region, Saudi Arabia's Tadawul All Share Index rose 0.63 per cent, Qatar's measure slipped 0.65 per cent, Bahrain's bourse gained 0.38 per cent, Kuwait's gauge added 0.44 per cent and Muscat's exchange closed flat.

Dubai

Meanwhile, the Dubai Financial Market (DFM) General Index suffered its biggest one-day drop in seven months on Tuesday as investors booked profits.

The bourse lost 3.71 per cent to 1,689.18 with the main selling pressure centred on penny stocks that outperformed all expectations in recent weeks. Utilities firm Tabreed, which had gained 427 per cent from its January 16 low, lost 7.04 per cent to Dh1.49.

Dubai Investments fell 4.8 per cent to Dh0.952 while the Dubai Financial Market, which has benefited from the recent surge in volumes and turnover, tumbled 6.45 per cent to Dh1.16.

"The year-to-date performance of the DFM has been spectacular but the rally has been 70 per cent driven by retail names," said Anastasios Dalgiannakis, institutional trading manager at Mubasher Financial Services.

"On that basis it is logical to see a correction. Some names have been driven aggressively higher so there is still a lot of money to be made in the market, and scope for further profit-taking," he added.

Emaar Properties, one of the few stocks to have seen interest from institutional investors during the recent rally, fell 2.95 per cent to Dh2.96. Real estate names dragged in general with Union Properties and Deyaar among the top decliners. Tamweel was the only stock to register gains, adding 12.88 per cent to Dh1.49.

Of the other 28 companies traded, 27 fell and one closed unchanged. Some 633.9 million shares worth Dh844 million were traded.