Dubai: UAE stocks slid on Monday for the second straight day this week as shares of Union Properties, Emirates NBD, Deyaar, Emaar and Aldar, among others, tumbled amid a sell-off in emerging markets which have led to shares in the US and European markets also retreating, raising questions about the strength of economic recovery in various markets.
Among the high turnover stocks, Deyaar declined 2.27 per cent, Emirates NBD fell 2.10 per cent, Aldar Properties was down 3.03 per cent, Emaar closed 0.64 per cent lower and Union Properties lost 1.97 per cent.
The Dubai benchmark stock measure DFM General Index fell 45.79 points or 1.23 per cent to 3687.91. The Abu Dhabi General Index lost 0.92 per cent to close at 4527.80.
However, an analyst feels there is no reason for panic as the local markets have been among the best performers in the world this year. Retail investors, as is natural during such global routs, have betrayed nerves that has led to a sell-off in the local markets.
“The UAE market is up 10 per cent year-to-date, one of the best world performers,” Sebastien Henin, portfolio manager at Abu Dhabi-based The National Investor, said. “Retail investors are very active in the market.”
The fact that retail investors are active was seen as they picked up stocks of Waha Capital and National Bank of Abu Dhabi which had seen sell-offs the previous day.
Profit-taking
He added: “The sell-off in developed markets and the currency crisis that we had in few emerging markets has triggered some profit-taking in the UAE market but the trend is intact so far.”
Companies reporting decent earnings have not faced the brunt of this latest global sell-off. On Monday, Emirates NBD reported a 27 per cent rise in net profit for 2013 to Dh3.3 billion and was yet one of the bluechips to witness selling. Tabreed, which on Sunday reported a 15 per cent rise in net profit, faced a similar result. It plunged 5.24 per cent to Dh2.35.
In Dubai, among the big losers were a few insurance companies: Islamic Arab Insurance Company (Salama) and Takaful Emarat dropped 7.83 per cent and 5.03 per cent respectively.
In the capital, Ras Al Khaimah Properties dropped 4.17 per cent and Dana Gas declined 3.09 per cent.