Dubai: The Dubai index fell from its highest level in four months on Sunday as investors booked profits after registering more than 8.5 per cent gains in the previous week.
The Dubai Financial Market General Index ended 1.43 per cent lower to reach 4,021.48. Volumes in value terms were at Dh1.5 billion.
“The profit taking was linked to global markets, which were down on Friday,” said Mohammad Shabbir, Head of Equity Funds & Portfolios at Rasmala Investment Bank.
On Friday, the S&P500 posted its biggest percentage loss since March 25 as investors shunned risk amid new trading regulations in China, renewed worries about Greece running out of money, and tepid US corporate earnings.
The Dow and S&P500 both snapped two weeks of gains. For the week, the Dow went down 1.3 per cent, the S&P500 also fell 1 per cent, while Nasdaq was also down 1.3 per cent.
Arabtec ended 0.68 per cent lower at Dh2.90, while Emaar Properties ended 0.98 per cent lower at Dh8.07.
Damac Properties, however, ended 2.07 per cent lower at Dh2.96.
“If we look at results in Dubai, the news from Dubai Islamic Bank was on the positive side, so we feel that the Dubai index would be in a better position to sustain itself going forward,” said Shabbir.
“We think Dubai and Abu Dhabi markets had lagged along in the first quarter, but we see further improvement as we move along,” Shabbir said.
Out of a total of 34 shares traded on the exchange, shares of 23 companies fell, while shares of 11 rose.
The Abu Dhabi Securities Exchange General Index ended at 4,639.12, down 0.36 per cent.
Out of a total of 22 shares traded on the exchange, shares of 16 companies fell, while shares of 4 rose.
Global trends
“It remains to be seen how Saudi markets would react to negative news from global markets on Friday. So from that point of view we need to see how long that disconnect would continue,” Shabbir said.
Saudi’s Tadawul All Share TASI index ended at 9,618.61, up 3.99 per cent.
Saudi Basic Industry (SABIC) the world’s biggest petrochemical manufacturer, ended at 95.75 Saudi riyals, up 9.81 per cent after its net profit exceeded analysts expectations.
Sabic reported a 39 per cent decline in first-quarter profit to 3.93 billion riyals. Revenues at SABIC plunged 28 per cent from a year earlier to 35.56 billion riyals (Dh34.8 billion, $9.48 billion), and dropped 18 per cent from the previous quarter.
Elsewhere in the Gulf, Qatar Exchange Index ended 0.73 per cent lower at 11,892.95, while Muscat Securities Market 30 Index ended 0.31 per cent higher at 6,290.22.
