Speculation drives UAE stocks down

Dubai: The Dubai Financial Market General Index fell 0.7 per cent to 5,643.44 on Sunday, while the Abu Dhabi Securities Exchange General Index declined 0.3 per cent.

The Kuwait Stock Exchange Index fell 0.3 per cent and Saudi Arabia's Tadawul All Share Index slid 0.2 per cent. The shares declined on speculation prices have outpaced prospects for earnings growth.

Indexes in Qatar, Oman and Bahrain shares advanced. The measures in Dubai, Abu Dhabi, and Saudi Arabia gained 5.4 per cent, 9.8 per cent and 7.3 per cent respectively so far this quarter.

"Most Gulf markets climbed in April as companies announced good earnings," said Haissam Arabi, managing director of asset management for Shuaa Capital.

"It's an expected minor correction as we head towards the summer."

Shuaa declined one per cent to Dh8.14 after the UAE's biggest investment bank said fourth-quarter net income fell 51 per cent to Dh53.1 million ($14.5 million) because of turmoil in international markets.

National Bank of Abu Dhabi fell 1.38 per cent and Sorouh Real Estate drop-ped 1.03 per cent.

Qatar's main index closed above 12,000 for the first time since December 11, 2005, led by Qatar Gas Transport (Nakilat) and Industries Qatar. Nakilat and Industries Qatar rose 1.66 per cent and 0.79 per cent respectively.

The benchmark, the Gulf Arab region's second-best performer this year ended 0.92 per cent higher at 12,039.72 points.

Oman's benchmark closed 0.15 per cent higher at 11,391.68 points for the third successive session after a day of low trading volumes.