Real estate shares lead decline on UAE bourses

Dubai: UAE shares fell, paring this month's rally, as Oman Telecommunications surged, pushing the country's index to a record.

Tamweel, the UAE's big-gest provider of home mortgages by market value, fell for a fourth day. Aldar Properties retreated, ending a three-day winning streak. Deyaar Development had its biggest drop in four days on a media report that a third person was arrested in connection with possible fraud at the company.

The Dubai Financial Market General Index lost 1.2 per cent to 5,714.8. The Abu Dhabi Securities Market Index dropped 0.4 per cent. The measures have still gained 6.8 per cent and 9.7 per cent so far this month, respectively.

"It's a minor and much needed correction since Gulf markets gained in the past month as companies reported good earnings," Amro Diab, head of Gulf institutional sales at EFG- Hermes Holding, said in a telephone interview from Dubai yesterday.

The MSCI GCC Countries Index, a measure of more than 140 companies in six Gulf states, has risen seven per cent in April.

Realty sector

Tamweel fell 2.4 per cent to Dh7.78. The shares have jumped 14 per cent so far this month. The company on April 22 said first-quarter profit more than tripled as an economic boom in the second-biggest Arab economy boosted demand for homes.

Aldar dropped 3.4 per cent to Dh11.55, paring this month's advance to 13 per cent. Abu Dhabi's largest property developer on April 23 said first-quarter net income more than tripled.

Deyaar declined 1.3 per cent to Dh2.27. In Abu Dhabi, public prosecutors are investigating a suspect, identified only by the initials A.A.G., who swindled 2,500 investors in the country out of Dh400 million ($109 million), according to local police.

Oman's Muscat Securities Market 30 Index gained one per cent, closing at a record 11,372.32. Oman Telecommunications jumped 6.9 per cent to 1.979 riyals, its highest close since November 2005. The largest phone company in the sultanate said first-quarter net income surged 60 per cent.

Omantel trades at 12.7 times estimated earnings. That compares with multiples of 15.9 for Etihad Etisalat, Saudi Arabia's second-largest mobile-phone service provider, and 15.6 for Zain of Kuwait.

Saudi Arabia's Tadawul All Share Index added 1.4 per cent. Saudi Zain, a unit of Zain, jumped 5.9 per cent to 26.75 riyals.

The Kuwait Stock Exchange Index advanced 0.2 per cent, ending five days of declines. Qatar's Doha Securities Market Index fell 0.4 per cent, while the Bahrain All Share Index gained 0.4 per cent.

Al Wathba National Insurance jumped 9.9 per cent to Dh6.87 dirhams. Damac Kuwaiti Holding climbed 25 per cent to 325 fils.

The unit of Dubai-based real-estate group Damac Holding started trading on Kuwait's stock exchange yesterday.