Dubai: The Dubai index fell on Wednesday, easing from its highest level in nearly three weeks led by Emaar Properties and Arabtec, as investors booked profits ahead of Eid al-Adha holidays.
The Dubai Financial Market General Index fell 1.23 per cent, the most since September 11, to end at 5,065.02. Emaar Properties, the most active by value, shed 0.85 per cent to end at Dh11.70.
“As we come closer to the allocation, we expect people liquidating and start investing into the IPO,” said Musa Haddad, equity fund manager at NBAD’s asset management group,
“People are also booking profits ahead of holidays after strong performance and will go back to the market after the holidays,” he said. Eid al-Adha holidays will start in early October.
On the index, out of a total of 31 shares traded on the exchange, shares of 24 companies declined, shares of only 6 rose, while shares of the remaining company stayed unchanged.
In Abu Dhabi, the general index ended 0.14 per cent lower at 5,112.07. Out of a total of 33 companies, shares of 6 companies rose, while 22 of them declined and the other 5 remained steady.
FOODCO Holding shed the most 10 per cent in trade, while Fujairah Cements declined more than 9 per cent.
Rebound again:
“Market would rebound again and continue to trade positive in the start of October as the underlying fundamentals are still positive,” said Hadad.
The subscription for the retail investors ends on Wednesday for Emaar Mall’s IPO. Subscription for Institutional investors will end on September 26 although the company said the portion was oversubscribed just one day after the launch.
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.
Arabtec fell 2.35 per cent to end at Dh4.57. The company was unaware regarding the agreement between its former chief executive officer, Hasan Ismaik, and Aabar Investments to sell his stake in the company, it said on September 16. Ismaik owns about 28 per cent in the company.
Meanwhile, fashion retailer Marka will get listed on bourses on September 25.
