UAE rally stalls; Arabtec slips after strike

Dubai: UAE stocks fell after both Dubai and Abu Dhabi rallied to multi-year highs, adding billions of dollars in market value this year. Most fund managers expect more such bouts of profit taking as the focus shifts to valuations during the summer months when activity usually ebbs, only to pick up after Ramadan, according to a Zawya Dow Jones report.

Abu Dhabi’s index declined 1.2 per cent to 3,523.34 points, trimming 2013 gains to 33.9 per cent. Small-caps led the decline — a sign retail activity is dominating.

Dubai shares finished 0.5 per cent lower at 2,341.20, cutting year-to-date gains to 44.7 per cent.

Dubai’s Arabtec Holding fell 2.1 per cent to Dh2.39 after thousands of workers at the firm staged a rare strike, demanding higher pay.

“With Dubai up 45 per cent year-to-date it’s somehow difficult to think it can continue on its path, yet its valuation measured by the price to book ratio is by no means overvalued at just 0.96 times,” Al Masah Capital said in a note, as quoted by Reuters.

Elsewhere, Kuwait’s bourse extends its rally, up 1.3 per cent to 8,125.98 points.

In Saudi Arabia, developer Dar Al Arkan slipped 2.6 per cent, halting two sessions of sharp gains as investors booked profit after the company announced capital raising plans. Saudi shares traded flat at 7,300.05 points.