Dubai: Dubai’s benchmark index fell on Wednesday, to hit its lowest level in more than seven weeks, led by Emaar as investors resorted to profit-taking after the recent run up. The Abu Dhabi index also ended lower led by banks.
The Dubai Financial Market (DFM) General Index ended 1.74 per cent lower to end at 4,899.62, after hitting a low of 4,890.18, a level last seen on August 7.
“We saw high volatility in western markets, we have lost more than 20 per cent in crude oil in a few months, these combinations of factors were responsible for profit taking,” Sebastien Henin, head of asset management at The National Investor said.
“On the long term, I’m positive on the market because of growth there is a lot of IPOs coming in the market. Though the short term our outlook is clouded by happenings in China and western economies,” said Henin.
Shares of Emaar Properties ended 2.17 per cent lower at Dh11.25 per share, after gaining 3 per cent since September 1.
“All the high beta stocks have suffered and it’s not a surprise. I expect Emaar Malls to hold Dh3 or current levels in the short term,” said Henin. Emaar Properties’ Egyptian unit, Emaar Misr, would come out with an IPO around June 2015 and had a value of 3-4 billion dirhams, its chairman Mohamed Alabbar said last week.
The company also listed its malls unit on October 2 and raised $1.5 billion. It also plans to use Dh9 billion from the completed IPO as dividend, that will come for discussion in a board meeting on October 9.
Arabtec also fell 3.37 per cent to end at Dh4.30. 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.
Dubai Financial Market also ended 4.94 per cent to be at Dh3.08. The planned merger of the UAE’s two top exchanges is still on the table and will take more time to complete, a Dubai government official told Bloomberg last week.
On the broader index on Tuesday, out of a total of 31 shares traded on the exchange, shares of 24 companies declined, shares of 9 rose, while shares of just one company remained unchanged.
In Abu Dhabi, the general index ended 0.65 per cent lower at 5,083.61. Real estate firm Aldar Properties fell 3.65 per cent in trade. Out of a total of 31 companies, shares of 6 companies rose, while 18 of them declined and the other 7 remained steady.
