Bears tighten stranglehold on UAE financial markets

Dubai: The bearish trend continued in UAE markets with Dubai shares falling more than one per cent, while the Abu Dhabi index closed marginally down.

The Dubai Financial Market (DFM) General Index shed 1.21 per cent to close at 1,925.33. The Abu Dhabi Securities Exchange (ADSE) Index shed 0.14 per cent to end at 2,710.15.

"The overall trend is sideways amid low volumes and until end of December we cannot expect any surge," said Shiv Prakash, equity investment analyst at Mac Sharaf Securities. "It will be sideways or downward."

Prakash said much now depended on the performance of Emaar Properties, which has a huge bearing on the DFM.

The stock of the largest property developer in the Middle East declined for the third straight day, shedding 3.01 per cent to close at Dh2.90.

"Everything depends on Emaar," Prakash said. "If it falls below Dh2.80, it can go towards Dh2.50 and this is the level where it takes support and then it can go as low as Dh2.20."

Other losers on the DFM included Emirates NBD, which reversed Monday's gains, to close 1.39 per cent lower at Dh3.55.

The Dubai Islamic Bank, lost 2.06 per cent; while the Dubai Financial Market, retreating 3.20 per cent.

However, Arabtec, the largest construction company in the UAE, advanced 4.39 per cent to close at Dh4.99. Air Arabia gained 1.01 per cent, taking its gains to a third consecutive day rally.

Meanwhile, real estate and energy stocks declined on the ADSE index.

Aldar Properties fell 3.82 per cent, Sorouh Real Estate dropped to Dh3.37, Dana Gas closed 1.39 per cent lower, Abu Dhabi National Energy shedding 4.03 per cent and First Gulf Bank gaining 2.5 per cent.