Dubai: Dubai stocks traded lower on the first day of the week as blue-chip lenders and developers underwent a selling pressure with capital flowing into safer bets after US bond yield rose despite the Federal Reserve's dovish stance.
Dubai Financial Market ended the day lower by 0.8 per cent to trade at 2,584 points, following the lead set over the weekend by global equity markets. Investments flew to the safety of sovereign bonds amid growing concerns about new waves of the virus that has already forced parts of the world to resort to partial lockdowns.
Lenders, Emirates NBD and Dubai Islamic Bank, drifted into a negative territory. But Emaar Properties was the one dragging the index the most, with Emaar Development shedding for a third day following no-dividend proposal from its board.
Emaar Properties pulled back 2.5 per cent in what marked its biggest single-day loss this month. Dubai property stocks have been squeezed by underperforming real estate market with road to recovery remains long amid falling rents and continuing oversupply despite reports that buyers have began to return to the market in last few months.
Dubai's biggest developer's 2020 profits plunged more than a half of what it reported a year earlier with pandemic coming in to add to woes the market was already grappling with. As part of the plan to turn its business around, it announced earlier this month to buy out minority shareholders of its shopping center unit Emaar Malls for eventual merger.
Dubai Securities Exchange traded lower for a third straight session, declining 0.2 per cent to close at 5,723 points. Most financial stocks struggled to attract investors with First Abu Dhabi Bank, Abu Dhabi Commercial Bank and Abu Dhabi Islamic Bank all closing the day lower.
Ras Al Khaimah Cement was the biggest percentage loser, dropping 3.3 per cent after reporting late last week that its accumulated losses reached around Dh120 million amounting to a near 24 per cent of the capital