Business | Markets
Dubai index declines 1.11% as investors rake in profits
The Dubai Financial Market General Index flattered to deceive, falling 1.11 per cent as investors resorted to profit taking, putting paid to hopes of a longer rally than its counterpart in Abu Dhabi.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:01 August 14, 2008
Dubai: The Dubai Financial Market General Index flattered to deceive, falling 1.11 per cent as investors resorted to profit taking, putting paid to hopes of a longer rally than its counterpart in Abu Dhabi.
The benchmark index closed 56.53 points lower at 5,017.56 with the bellwether Emaar Properties losing 1.83 per cent to Dh9.66.
Other prominent decliners included Dubai Financial Market Company, which fell 4.12 per cent, Tamweel sliding 5.71 per and Amlak Finance and Ajman Bank dropping 4.77 per cent and 4.50 per cent respectively.
Abu Dhabi, however, extended its rally for the second straight session, closing 71.32 points up or 1.60 per cent to 4,534.53.
"Yesterday, on DFM, there was considerable rise and today being Thursday, the last day of the week, no one wants to hold on to their position," said Shiv Prakash, technical analyst at Mac Sharaf Securities.
"Specifically Emaar, the selling pressure was consistent.
"The level it broke was Dh9.90, which was its resistance area, and that's where the sell-off was coming from."
Abu Dhabi's rally into the second consecutive day was not surprising given the kind of decline it witnessed over the last two weeks, according to Prakash.
"In fact, yesterday, ADX could not show the kind of a rise that Dubai showed and if you compare the fall of the two markets over the last one week, Abu Dhabi's was much more sharp. Today's rally was part of the continuing correction."
Aldar Properties, Sorouh Real Estate, First Gulf Bank, Aabar Investments were among the gainers. Of the 38 companies which traded, 25 went up, eight went down and five remained flat.
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