Dubai: The Dubai index fell on Wednesday, extending losses for a sixth straight session to hit its lowest level in a month as traders continued booking profit amid mixed first quarter results from corporates.

The Dubai Financial Market General index closed 0.49 per cent lower at 3,307.61, after hitting a low of 3,255.96, a level last seen on April 3.

“There has been profit-taking as there are no real catalysts in the market. We are at the end of the dividend season, and results are not according to expectations,” said Tariq Qaqish, head of asset management at Al Mal Capital. “All this has created a sharp decline in the market.”

Emaar Properties ended more than 1 per cent lower at Dh6.27 despite posting better than expected results for the first quarter earlier in the week, while Dubai Investments also fell more than a per cent to end at Dh1.95. Gulf Finance House closed 0.45 per cent lower at Dh0.876, A few stocks also gained. Arabtec gained 0.68 per cent to end at Dh1.47, while Dubai Parks and Resorts gained more 2 per cent on the first day of its rights issue. The stock ended at Dh1.30. Out of a total of 37 stocks traded on the exchange, shares of 20 firms fell, while other 15 firms rose. The rest remained steady.

Bucking the trend, the Abu Dhabi Securities Exchange General index closed 1.06 per cent higher at 4,428.61.

Lower liquidity

“Companies that are looking to increase capital would suck out liquidity from the markets,” said Qaqish.

Dubai Parks and Resorts was one of the firms which opened subscription for its rights issue, and analysts expect such capital raising exercise from companies would hinder liquidity in the market. Volumes on the Dubai bourse was steady at Dh503 million.

Going ahead, “investors would be looking at the valuations very soon, and markets would be waiting for some positive news. As the valuations get cheap, we could see some interest coming back,” Qaqish said.

Else where in the Gulf on Wednesday, Saudi Arabia’s Tadawul index ended 0.78 per cent lower at 6,586.50, while Qatar exchange index closed 0.85 per cent lower at 9,854.85.