Losses by heavyweight shares pull UAE benchmarks down

Dubai: etisalat and Abu Dhabi Commercial Bank (ADCB) weighed on Abu Dhabi's main index on Thursday, while Dubai's benchmark fell on Dubai Islamic Bank and Dubai Financial Market's losses.

Abu Dhabi's bourse ended 0.18 per cent lower at 5,016.84 after both etisalat and ADCB fall 0.70 per cent and 1.90 per cent respectively.

Shares in Dana Gas end 0.49 per cent higher after the market showed little reaction to the posting of a first-quarter net profit of Dh25 million, up 19 per cent.

"The markets are very slow in both Dubai and Abu Dhabi. They are moving sideways and I think they will continue to do so," said Amr Diab at EFG-Hermes.

Dubai's bourse ended 1.31 points lower at 5,685.46 pulled by Dubai Islamic Bank which fell 0.66 per cent, and Dubai Financial Market, which slipped 0.87 per cent.

In other regional markets, Qatar's main index ended lower on profit-taking after three days of higher closes, while Ithmaar Bank lifted Bahrain's index.

Qatar Gas Transport Co (Nakilat) closed 0.5 per cent lower and Doha Bank ended 1.5 per cent lower. Qatar's bourse fell 0.33 per cent to 11,929.62.

Pricing

"The market has risen around 25 per cent year-to-date and valuations are looking very attractive," said Rami Sidani, vice-president of asset management at Shuaa Capital.

"The banking sector is trading around 12 times price to earnings. We've seen 40 per cent in first-quarter growth compared to the first quarter of 2007," he says.

Qatar's main bourse is the second-best performer in the Gulf Arab region.

Bahrain's benchmark climbed 0.65 per cent to 2,837.84 after shares in Ithmaar Bank surged 7.94 per cent.

The stock rose sharply after it said on Wednesday profit rose 91 per cent in the first-quater to $59.3 million. Ahli United Bank gained 1.6 per cent.

Oman's bourse, the Gulf Arab region's best-performing index this year, ended 0.36 per cent higher at 11,374.48 as Omantel and Raysut Cement rise 0.94 per cent and 2.21 per cent.

"Overall the market is moving well. I think the top will be reached this quarter. There is a lot of bullishness in the market," said Shantonu Roy, senior research analyst at Amwal Investment. The index has risen 25.44 per cent so far this year.