Dubai: Emaar Properties wiped off two days of gains, falling more than 2 per cent on Sunday, weighing on the wider Dubai index.
“The market is clearly not liking the news of Emaar lowering the size of the UAE development IPO from up to 30 per cent to 20 per cent. This lowers the expected one-off dividend from Dh1 to 67 fils a share,” said Vrajesh Bhandari, Portfolio Manager, MENA Equities at Al Mal Capital.
Emaar Properties reversed from its intra-day high of Dh8.81, a resistance level that the stock tried breaching early last week on October 15. Emaar Properties closed 2.06 per cent lower at Dh8.57.
“The stock failed to break over its previous high, met renewed selling pressure, hints a retest of its previous low at Dh8.40 and later may target Dh8.25 in the short term,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note.
Gulf Finance House closed 1.76 per cent higher at Dh1.73 after that Khaleeji Commercial Bank may list on Dubai Financial Market.
“If GFH managed to break the level of Dh1.73, it’s a confirmation that reversal would take place,” said Hisham Khairy, head of institutional trading at Menacorp. Arabtec closed more than 1 per cent at Dh3.01.
The Dubai Financial Market General index closed 0.79 per cent lower at 3,643.69.
“The index is trading below the critical barrier at 3,680 with support seen at the 50 Day moving average at 3,620. The range is expected to continue until it registers any clear breakout either side,” Prakash said.
The Abu Dhabi Securities Exchange general index closed 0.16 per cent lower at 4,498.29.
Dana Gas closed 1.32 per cent lower at Dh0.75, while Eshraq Properties clsoed 1.25 per cent higher at Dh0.81. Etisalat closed 0.28 per cent higher at Dh17.85.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.6 per cent lower at 6,968.03. The Muscat MSM 30 index closed 0.41 per cent lower at 5,046.11.