Dubai: Dubai stocks failed to sustain last week’s bounce as traders took the opportunity to book profits at higher levels.

The Dubai Financial Market General Index closed 0.80 per cent lower at 3,493.11, after gaining nearly 2 per cent on Thursday.

Emaar Properties closed 2.67 per cent lower at Dh7.29. Gulf Finance House closed 1.82 per cent lower at Dh2.69. DP World closed more than 1 per cent lower at $21.50.

“Those stocks have been going up more than the others, so that is subject to profit-taking. The UAE indices will continue to bump around these levels,” Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities (NBADS) said.

Among the gaining stocks, Aramex closed 0.90 per cent higher at Dh5.15. Salama closed 0.21 per cent higher at Dh0.471. Out of a total of 33 stocks traded on the exchange, shares of 18 firms fell, while other 11 rose. The rest remained steady.

The Abu Dhabi Securities Exchange general index closed at 4,419.38, down 0.13 per cent.

Bank of Sharjah closed 2.82 per cen lower at Dh1.38, while First Gulf Bank closed 0.40 per cent lower at Dh12.60. Abu Dhabi Islamic Bank closed 0.76 per cent lower at Dh3.92. Eshraq Properties closed 0.85 per cent lower at Dh1.16.

Elsewhere in the region, Saudi Arabia’s Tadawul closed 0.45 per cent higher at 6,952.63, while the parallel market index or Nomu closed 1.01 per cent lower at 5,359.38. The Qatar exchange index closed 0.22 per cent lower at 10,338.55.

Downside:

NBADS feels the last week’s rate hike from regional central banks may be negative for consumption, while banks may stand to gain.

“Last week, we saw US raising interest rates, and we also saw regional central banks raise rates, so that’s negative for consumption. The positive in interest going up would be banks, but I don’t think anyone will price that in right now,” Manibhandu said.

Traders may want to wait till first quarter results to chat out future course of action on stocks, until then stocks may witness more downside.

“People may price that in the third quarter. That means that stocks here are vulnerable to trending down. We need to have new news come in. We are not going to get any news coming until the first quarter results are priced in. We are subject to downside more than upside at this moment,” Manibhandu added.

“Investors would be looking at statement from management of the companies. If banks don’t have anything positive to say, then banks may be under pressure,” he added.