Dubai: Dubai index ended lower on Sunday, extending losses for a fourth straight session as investors booked profits ahead of holidays.

The Dubai Financial Market (DFM) General Index ended 1.26 per cent lower at 4,990.72, after losing 2.62 per cent in the previous three sessions.

“We are seeing liquidity going to the IPO (initial public offering) and the holiday season. Valuations are pretty good on the Dubai market, so taking profit is a sensible move,” said Saleem Khokhar, head of equities at NBAD’s asset management group.

Eid Al Adha holidays for the UAE financial markets will begin on Friday (October 3), and trading will resume on Tuesday (October 7).

Emaar Properties is seeking to raise up to Dh5.8 billion ($1.58 billion) by selling its stake in its mall unit through an initial public offering. The company will sell 2 billion shares or 15.4 per cent stake in the price range of Dh2.5-Dh2.9 per share.

The subscription for the retail investors ended on Wednesday for Emaar Mall’s IPO. Subscription for Institutional investors ended on September 26, although the company said the portion was oversubscribed just one day after the launch. The company will list on October 2 on the DFM.

The IPO has sapped liquidity in the market as retail investors chase the allotments to the IPO.

“Post vacation we can expect some liquidity coming back to the market. We do expect some volatility but it will be a positive market,” said Khokhar.

On the index, out of a total of 34 shares traded on the exchange, shares of 28 companies declined, shares of only 5 rose, while shares of the remaining companies stayed unchanged.

In Abu Dhabi, the general index ended 1.03 per cent lower at 5,074.77. Out of a total of 32 companies, shares of seven companies rose, while 16 of them declined and the other nine remained steady.

Banks favoured

“We like banking and real estate sector. As long as the strong economic growth continues, banks will continue to benefit from this,” said Kokhar.

Arqaam Capital expects Emirates NBD to jump to Dh13.5, an upside of about 35.9 per cent from current levels driven by strong profitability and resilient margins. The investment bank also expects Emirates NBD profits to double in another 12 months.