Dubai: Dubai’s benchmark index fell on Tuesday, after gaining for three straight sessions, led by Arabtec and Emaar. The Abu Dhabi index also fell led by Dana Gas.

“The market will continue to move sideways with negative bias as the result of the upcoming IPO, and this will continue to drain liquidity in the market,” said Tariq Qaqish, head of asset management, Al Mal Capital, who manages a portfolio of Dh500 million.

“This will be an opportunity for medium term investors to accumulate at lower levels,” he added.

The Dubai Financial Market (DFM) General Index fell 0.66 per cent to end at 4,984.92, after gaining 2.16 per cent in the previous three sessions.

Out of a total of 30 companies, shares of 7 companies rose, while 18 of them declined and the other 5 remained steady.

Arabtec fell as much as 2.09 per cent before ending steady at Dh4.77 per share.

“I think the announcement of Arabtec has disappointed the speculators, who were buying stock based on rumours,” said Qaqish.

Arabtec said it did not have any information on an agreement regarding Aabar buying shares from former chief executive officer Hasan Ismaik.

Ismaik, who resigned abruptly in June, holds about 28 per cent in the company. Ismaik had said earlier that he was in talks with Abu Dhabi state fund Aabar Investments to sell part of his stake.

Emaar Properties also fell 1.79 per cent to end at Dh11, after the company said it has received sufficient orders to cover the entire tranche allocated to the qualified institutional investors.

“What we are seeing a massive appetite, we do believe it will be hugely oversubscribed,” said Qaqish, adding “the flexibility shown by the regulator to the Emaar IPO will encourage other companies to go for one.”

The developers of the world’s tallest tower started selling at least 15 per cent of shares in Emaar Malls Group starting September 14, and list them on the Dubai Financial Market on Oct. 2.

The company said it will allocate 60 per cent of the shares to institutions and not more than 40 per cent to retail investors.

The share sale is touted to be one of the biggest after the credit crises of 2008, when many companies were forced to restructure debts and stall projects.

Elsewhere, in Abu Dhabi, the general index ended 0.14 per cent lower at 5,149.58. Out of a total of 34 companies, shares of 13 companies rose, while 14 of them declined and the other 7 remained steady.

Dana Gas, which was the most active stock, fell 5 per cent to Dh0.66 in trade.