Dubai index falls more than one per cent as caution sets in ahead of results

Dubai:Dubai index fell more than 1 per cent in late trade on Sunday as cautious traders booked profits ahead of results of key companies.

The Dubai Financial Market General index closed 1.13 per cent lower at 3,678.45, after falling from a high of 3,736.74.

“We are entering into the earning season, so that is making traders a little bit cautious,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group to Gulf News. Khokhar expects flat earnings from most of the UAE companies.

Union Properties closed less than a per cent to be at Dh1.14. Arabtec closed 0.67 per cent lower at Dh1.48. Drake and Scull closed more than 3 per cent lower at Dh0.530. Dubai Entertainments closed more than a per cent lower at Dh1.26.

HITS Telecom closed more than 4 per cent higher at Dh0.787. Out of a total of 39 stocks traded on the exchange, shares of 26 firms fell, while other 8 rose. The rest remained steady.

The Abu Dhabi Securities Exchange general index closed 0.14 per cent lower at 4,674.77. Rak Properties closed 2.63 per cent lower at Dh0.74. Eshraq Properties closed 2.91 per cent higher at Dh1.06. Asmak or International Fish Farming closed 6.94 per cent higher at Dh4.47. Out of a total of 28 firms, shares of 11 firms rose, while other 12 shares fell. The rest remained steady.

Good run:

“We had a good run on Dubai index last year, so some money is taken off the table already. I don’t see anything just yet something more serious bearish factor in the market,” Khokhar said.

The Dubai index gained 36 per cent in the past one year as traders took risky bets in the background of a recovery in oil prices.

Saudi Arabia’s Tadawul index closed 0.13 per cent higher at 6,930.92. Saudi Basic Industries closed 0.33 per cent higher at 93 Saudi Riyals,

“We like the Petrochemical sector in Saudi Arabia, which is expected to be resilient, and it is looking a bit more stable,” Khokhar said. Alinma Bank was up 0.12 per cent at 14.30 riyals.

Elsewhere in the Gulf, the Qatar exchange index closed 0.30 per cent higher at 10,742.03. The Muscat Securities MSM 30 index closed 0.32 per cent lower at 5,744.05.

The Kuwait Stock Exchange, which led the Gulf regional markets in terms of performance, was 1.89 per cent higher at 6,222.83.