Selloff in real estate stocks drags UAE bourses into the red

Dubai: With real estate stocks sliding, UAE shares declined yesterday - Dubai for the fourth straight day and Abu Dhabi for the third time in four days.

The combined loss of the real estate index was 3.27 per cent.

Some analysts attributed the selloff during the day, to a local newspaper report that offplan property sales would have to be registered with the Dubai Land Department and that developers would not be allowed to charge transfer fees on such sales.

Investors believe that the new law might put an end to speculation and thereby hurt growth of the real estate sector.

Closing at its lowest since April 10, 2005, Emaar Properties weighed on Dubai Financial Market General Index, which fell 1.27 per cent to 4,820.91. Of the 27 stocks which traded, 22 declined, three gained and two remained flat.

Emaar declined 1.83 per cent to Dh9.13. Deyaar Development fell 2.09 per cent to close at Dh1.87. Union Properties slid 3.61 per cent to Dh3.95.

The other stocks to decline were Dubai Financial Market, down 2.74 per cent, Ajman Bank, shedding 1.67 per cent and Emirates NBD closing 2.20 per cent lower to Dh 11.10.

In Abu Dhabi, the index retreated 0.75 per cent to close at 4,462.78. Twenty one stocks declined, 12 gained and 4 remained unchanged.

Aldar Properties and Sorouh Real Estate, among the actively traded stocks in terms of turnover, pushed lower, declining 1.19 per cent to Dh9.93 and 1.75 per cent to Dh7.31 per cent respectively.