Property stocks bring ADSX to new two-and-a-half-week low

The Abu Dhabi Securities Exchange fell to a new two-and-a-half-week low Tuesday with property stocks the main drag on the index.

The bourse shed 0.43 per cent to 2,590.14 with Aldar Properties declining two per cent to Dh1.47 and Sorouh Real Estate closing at Dh1.33, down 1.47 per cent.

Industrial, telecommunication and health care stocks also saw losses with etisalat down 0.49 per cent to Dh10.25.

"We are seeing a bit of consolidation ahead of earnings season," said Chahir Hosni, Sales Manager at EFG-Hermes. "If we see companies reporting positive numbers we will see the market move higher."

Union Cement led losses, falling 6.19 per cent to Dh1.2, closely followed by Arkan Building Materials Company, which fell 5.59 per cent to Dh1.7. National Bank of Fujairah was the top gainer, climbing 9.95 per cent to Dh3.53. Finance House fell 9.87 per cent to Dh4.29.

"Right now, people want to see top line cash generation (from Sorouh) and we are just not seeing it," Robert McKinnon, ASAS Capital Chief Investment Officer told Reuters. "Real estate in general needs to see some handovers and cash," he added.

Of the 30 companies traded, 12 rose, 14 fell and four closed unchanged.

Regional markets performed better than Dubai and Abu Dhabi with Bahrain's measure up 0.25 per cent, Qatar's index rising 0.42 per cent and Kuwait's bourse climbing 0.04 per cent. Saudi Arabi's Tadawul All Share Index slipped 0.87 per cent to 6,548.42.

Construction companies and real estate developers weighed on the Dubai Financial Market (DFM) General Index yesterday, which slipped 0.71 per cent to 1,537.68.

Emaar fell 0.94 per cent to Dh3.17 and Arabtec declined 2.35 per cent to Dh1.66.

"We are seeing a bit of a slowdown after the recent rally," said Chahir Hosni, Sales Manager at EFG-Hermes. "However, we are moving into earnings season and, overall, people are starting to notice that UAE markets have witnessed strong numbers of late after a strong reverse in the banking sector and big losses in the real estate market," he added.

Air Arabia shed a further 1.46 per cent to Dh0.751, a new all-time low for the airline since its flotation on the index in 2007.

Most global markets were down yesterday with European debt worries and high oil prices at the top of investors' concerns. Brent crude rose to $121 a barrel, or near two-and-a-half-year highs, as unrest in the Middle East and North Africa and delays to elections in Nigeria supported prices.

In Dubai, National Cement Company was the top loser, falling 3.85 per cent to Dh3 followed by Takaful El Amarat Insurance Company, which closed at Dh0.555, down 3.48 per cent.

The top gainer was Salam Bah, which climbed 6.35 per cent to Dh0.67 followed by Takaful House (Dartakaful), which closed at Dh0.78, up 5.16 per cent. Of the 23 companies traded, eight rose, 12 fell and three closed unchanged.