UAE indices decline as slowdown worries persist

Dubai: Shares declined on Monday as investor concerns persisted about the fallout from a global slowdown likely to hit the banking and real estate sectors.

Led by Emirates NBD and Dubai Islamic Bank, along with Emaar properties and Union Properties, the Dubai Financial Market General Index closed 1.63 per cent lower to 2,907.06.

The largest bank by assets in the UAE, Emirates NBD declined 4.72 per cent to close at Dh6.05. Dubai Islamic bank fell 1.22 per cent. Emaar properties, the Middle East's largest real estate developer, lost 1.14 per cent to end at Dh5.22 and Union properties shed 1.96 per cent.

"The market has shown sideways moves over the past two weeks and today's close indicates caution on further bearishness in the offing," said Mac Sharaf's equity investment analyst Shiv Prakash in his daily note on the markets.

"A breakdown on support of 2,850 will start the downtrend in the markets. Bullishness can be seen only on a close above 3,300. We advice caution on the banking and real estate sector stocks as can face selling pressure in near term."

The general index has fallen 51 per cent this year.

Takaful Emarat and Takaful House were among the best performers, gaining 14.78 per cent and 8.14 per cent. They are expected to be bullish for some more days, Prakash said.

In Abu Dhabi, the benchmark index fell 0.55 per cent to 3,357.34. Real estate and energy stocks slid 2.77 per cent and 1.14 per cent respectively.

Selling pressure

Aldar Properties, Sorouh Real Estate, Arkan Building Materials, Dana Gas and Abu Dhabi National Energy Company, also known as Taqa - all faced selling pressure.

Aldar, the most liquid of the stocks with a turnover of Dh40.76 million, retreated 2.58 per cent to Dh5.28. Sorouh fell 3.21 per cent to Dh3.92. Dana Gas and Taqa closed 1.89 per cent and 0.50 per cent lower.

Banks had a mixed day with National Bank of Abu Dhabi gaining 6.58 per cent to close at Dh12.95 and Abu Dhabi Commercial Bank losing 4.01 per cent to end at Dh2.63