Abu Dhabi index drops to its lowest in seven months

Dubai: Gulf shares declined as retail investors speculated foreigners will continue to exit the region's stock markets. Measures in Oman and Qatar advanced.

Aldar Properties PJSC, Abu Dhabi's biggest developer, fell for the first time in three days. Amlak Finance PJSC dropped to an October low.

National Industries Group Holding SAK retreated to its lowest in more than a year after receiving approval to boost capital by selling shares to existing shareholders.

The Abu Dhabi Securities Exchange General Index lost 1.3 per cent to 4,358.13, its lowest since January 22. The Dubai Financial Market General Index slid 0.4 per cent, bringing the drop this year to 20 per cent. The Kuwait Stock Exchange Index fell 1.6 per cent, retreating for a sixth day.

"Retail investors have been scared off by the massive selling of foreign institutions,'' Samer Al Jaouni, general manager at Middle East Financial Brokerage Company LLC in Dubai, said in a phone interview.

Foreign investors were net sellers of Dh549 million ($149 million) of securities on the Dubai Financial Market PJSC, last week, the exchange said in a statement on August 30.

Aldar lost 4.1 per cent to Dh9.32. Amlak, the UAE's second-biggest mortgage lender by market value, declined 1.9 per cent to Dh3.53, its lowest since October 10.

Opportunities

National Industries tumbled 7.1 per cent to 1,040 fils, its lowest since June 2007. The largest industrial investment company in Kuwait received regulatory approval to raise its capital by 25 per cent by selling 294.3 million shares to existing shareholders to fund expansion.

Oman's Muscat Securities Market 30 Index added 1.8 per cent, ending three days of declines. Qatar's Doha Securities Market Index climbed 1 per cent, bringing the two-day gain to 2.4 per cent.

"Investors in some markets, such as Oman and Qatar, are starting to recognize the opportunities the drop has created,'' Al-Jaouni said. Oman's measure dropped 15 per cent and Qatar's index lost 11 per cent so far this quarter.

Saudi Arabia's Tadawul All Share Index slipped less than 0.1 per cent, while the Bahrain All Share Index declined 0.2 per cent.

The following stocks also rose or fell in the region. Stock symbols are in parentheses after company names:

Al Batinah Development & Investment Holding Co. (DBIH OM) jumped 4.3 per cent to 0.146 rial. The Omani company will sell at least 51 per cent of its stake in National Cans & Packing Industry LLC to a strategic investor, according to a statement posted on the website of the Omani bourse.

BUPA Arabia for Cooperative Insurance (BUPA AB) gained 2.5 per cent to 20.25 riyals. The Saudi Arabian company received an operating license to provide medical insurance in the kingdom. Damac Kuwaiti Holding Co. jumped 7.4 per cent to 290 fils. The unit of Dubai-based real-estate group Damac Holding said it may raise 18 million dinars ($67 million) through bond and sukuk sales.

Global Investment House KSCC slipped 4.1 per cent to 940 fils, its lowest close since April 20. Kuwait's biggest investment bank is seeking to buy wealth management and brokerage companies in London and plans to apply for an investment banking license in Malaysia.

Gulf Holding Co. advanced 1.1 per cent to 36.7 riyals. The Qatari company formerly known as Gulf Cement said it invested 5 million riyals ($1.4 million) in a start-up education company, according to a statement posted on the Qatari bourse yesterday. The education firm has a capital of 100 million riyals.

Zain slid 2.3 per cent to 1,680 fils. The Malawian unit of the Kuwait-based phone company with operations in 22 Middle Eastern and African countries said it will spend $90 million expanding its mobile-phone network in the African nation.