Dubai: Dubai’s benchmark stock index declined more than one per cent on Tuesday even as Emaar Properties, among the most active stocks, rose the most in almost two weeks in early trading as investors sold off shares of some stocks that had in the past few weeks witnessed strong gains.
In the capital, the stock measure declined for the third straight day as real estate, investment and financial services and energy stocks retreated.
The DFM General Index fell 1.12 per cent to end at 4176.64 amid modest increase in volumes of shares traded and their turnover. The volume rose from 1.21 billion shares to 1.45 billion, which was valued at Dh2.96 billion. Monday’s turnover stood at Dh2.50 billion.
“Some investors have started to book their profits, especially retail investors who have been pretty active in the market for the past weeks,” said Sebastien Henin, head of asset management at Abu Dhabi-based The National Investor. “There is a consensus that the market has over reacted since the beginning of the year to positive news flow regarding specific companies.”
The Dubai stock market is up more than 25 per cent so far this year when the MSCI Emerging Market Index is down four per cent.
Among the most active stocks, majority declined, including Deyaar Development, Air Arabia, Union Properties, Gulf Finance House and Gulf General Investment Co.
Air Arabia lost 4.79 per cent after registering a two per cent increase in its net profit for the 2013 financial year on Tuesday. For the fourth quarter, the low-cost airline reported a net profit of 12 per cent compared to the same period in 2012.
“Air Arabia has released some good results for the fourth quarter of 2014 but some investors were maybe expecting the company to be more generous,” said Henin.
Emaar Properties closed at Dh8.84, up 3.39 per cent after it rose to Dh8.93 at 11.41 am, its highest in almost two weeks. The property developer reported a set of strong results on Monday when it said that its annual profit rose 21 per cent, which beat most analysts’ expectations.
“Emaar released a very strong result after the close yesterday and the market reacted positively today,” said Henin. “At the same time, the stock has underperformed the index massively since the beginning of the year.”
Emaar has gained 17 per cent year to date after it share price doubled last year.
In Abu Dhabi, Waha Capital, Aldar Properties and Dana Gas fell.
