Profit-booking drags UAE stocks down as sentiment turns cautious

Abu Dhabi: UAE markets declined yesterday on account of profit-booking, which dragged Dubai's benchmark index down by 0.21 per cent to 5,441.45 and Abu Dhabi's general index by 0.49 per cent to 4,853.28.

The value of traded shares remained relatively low, not exceeding Dh989 million, indicating the cautious investor sentiment.

"In Dubai, there seemed to be an unjustified pressure on Emaar Properties to decline, for as soon as it recovers and the demand picks up, selloffs occur," said Ahmad Abdul Rahman, head of research and financial analysis at Amanah Capital.

Rahman finds it ironic that the share price of Arabtec surpasses Emaar's.

Emaar dropped 0.9 per cent to Dh11, while Arabtec advanced 0.37 per cent to Dh13.65.

Deyaar Development ended the session in positive territory, advancing 0.43 per cent to Dh2.36, while its parent, Dubai Islamic Bank (DIB) dropped by the same rate to Dh9.42.

Dubai Financial Market (DFM), which announced a 231 per cent increase in its first quarter net profit, dropped 0.58 per cent to Dh5.15.

In Abu Dhabi, investors cashed in on the gains made in the past two sessions, especially in the real estate and energy sectors.

Aldar Properties dropped 1.81 per cent to Dh10.85, followed by Sorouh Real Estate which fell 0.21 per cent to Dh9.60, while in the energy sector, Dana Gas retreated 1.89 per cent to Dh2.07.

"Abu Dhabi Securities Market is reporting a more consistent performance relative to Dubai, as the price movements there are more smooth, and more importantly; clearly justified," Rahman said.

In other Gulf markets, Qatar's main index ended higher for a ninth consecutive session, rising 0.18 per cent to 10,579,85. Commercial Bank of Qatar and Qatar Islamic Bank climbed 1.78 per cent and 1.17 per cent respectively.

Saudi Arabia's Tadawul index edged up 0.1 per cent to 9,562.23, its fifth consecutive gain. Dar Al Arkan Real Estate and Southern Province Cement climbed 3.17 per cent and 4.7 per cent respectively.

Oman's main index closed up 1.04 per cent at 10,941.84, its second gain. Omantel and Oman National Investments led the gainers.