Dubai: Property developer’s shares took a beating on Tuesday after the new UAE Central Bank regulations on mortgage exposures on property purchases in bid to tame price increases.
Expatriates will get 75 per cent of the property value while the UAE nationals will get 80 per cent for first investment of less than Dh5 million. The regulatory bank has set the upper limit on mortgages for second purchases at 60 per cent of a property’s value.
The cap would ensure that speculation was brought down to manageable levels and more importantly, it would curb access to easy money.
Deyaar shares fell 1.21 per cent while Emaar fell 1.14 per cent and Arabtec by 1.10 per cent.
Dubai’s benchmark index – DFM – fell 0.84 per cent to 2,888.40 per cent as profit-taking continued for the second day.
Among the gainers, Arig rose 14.09 per cent to Dh1.70, followed by GGICO by 8.67 per cent to Dh0.815 and Depa by 5.26 per cent to $0.600.
Oman Insurance suffered the worst by 10 per cent to Dh3.15, followed by NGI by 9.94 per cent to Dh8.43 and International Financial Advisors by 3.73 per cent to Dh1.29.
Of the 34 companies traded, six rose, 26 fell and two remained unchanged.
About 426.26 million shares worth Dh592.07 million were traded on Tuesday.
Emaar was the active value leader and Deyaar was the active volume leader on Dubai bourse.
Meanwhile, Abu Dhabi ended down 0.73 points to close at 3856.69 points.
Aldar Properties fell by 1.11 per cent and RAK Properties by 1.39 per cent.
Among the gainers, Abu Dhabi National Hotels rose by 4.35 per cent to Dh2.40, followed by Ras Al Khaimah Ceramics by 3.21 per cent to Dh2.57 and Union Cement by 2.61 per cent to Dh1.18.
Asmak suffered the worst by 9.71 per cent to Dh15.80, followed by Watania by 9.47 per cent to Dh0.86 and GCIC by 9.17 per cent to Dh1.09.
Of the 34 companies traded, eight rose, 19 declined and seven closed unchanged.
About 178.76 million shares worth Dh335 million were traded on Tuesday.
Eshraq was the active volume and value leader.
