Dubai: UAE markets retreated on Sunday as investors continued their profit taking in what analysts see as overbought conditions.
The Dubai Financial Market (DFM) benchmark index eased for the fourth time in five days as it fell 1.06 per cent to end at 2,281.27. Of the 28 stocks traded on Sunday, 12 declined, 11 advanced and five remained unchanged.
Heavyweight Emaar Properties declined 1.55 per cent to Dh5.72 and Dubai Islamic Bank fell 2.45 per cent to Dh3.18. Other stocks whose share prices also witnessed a fall include du, DP World and Arabtec.
Banks were among the main losers as the Abu Dhabi index shed 0.96 per cent to close at 3,427.20, its fifth decline since last week’s 54-month high.
“We are in a correction trend in the UAE and we need it,” Sebastien Henin, portfolio manager at The National Investor, told Reuters, adding that the overbought market condition was getting risky. “It’s still a bull market and if the prices come down a bit more, I wouldn’t be surprised to see investors buying again.”
For the year, the DFM and ADX indices are up 40.59 per cent and 30.37 per cent respectively.
In the capital, First Gulf Bank (FGB), Abu Dhabi Commercial Bank (ADCB) and Bank of Sharjah (BOS) were among the top decliners. FGB fell 3.13 per cent to Dh13.95, ADCB 2.83 per cent to Dh4.80 and BOS lost 2.30 per cent to Dh1.70.
Real estate developers Aldar Properties and Sorouh had a mixed day. While Sorouh fell 0.43 per cent to Dh2.33, Aldar remained unchanged at Dh1.90.
