Dubai: Margin pressure created by Emaar Properties, which has fallen over many sessions, is engulfing other stocks like Dubai Islamic Bank (DIB), Emaar Development and others.
Emaar Properties dipped below the keenly watched Dh4 mark on Monday, falling 4.56 per cent on the previous day’s close of Dh3.98.
“Traders are selling their other stocks to fill the hole left by losses due to Emaar Properties,” said an analyst who did not wished to be named.
The Dubai Financial Market (DFM) general index continued its losing streak, closing 1.98 per cent lower at 2,499.93 as traders became jittery ahead of the year’s close.
DIB fell 1.56 per cent to close at Dh5.05 while Shuaa Capital shed 3.63 per cent to end at Dh0.85.
Both Emaar Development and Union Properties were down nearly 10 per cent to close at Dh4.31 and Dh0.423, respectively. DP World eased 4.55 per cent to close the day at $16.37.
Most of the pain in the stock market has been from real estate stocks.
“The weakness in volumes [of transactions in real estate] is also being reflected in weak off-plan activity for property developers. We remain cautious on the real estate sector,” Al Mal Capital said in a note.
Meanwhile, in the UAE capital, the Abu Dhabi Securities Exchange (ADX) general index closed 0.97 per cent lower at 4,789.30.
First Abu Dhabi Bank (FAB) shed 0.86 per cent to settle at Dh13.80 while Dana Gas was down 7.53 per cent to Dh0.86.
Elsewhere in the Gulf region, Saudi Arabia’s Tadawul All Share index closed 0.25 per cent lower at 7,819.67.
Alinma Bank closed 0.99 per cent lower at 22.04 Saudi riyals while Saudi Basic Industries Corp fell 0.66 per cent to 119.80 riyals.
The Muscat MSM 30 index closed 0.97 per cent lower at 4,503.49, while the Qatar Exchange index eased 0.46 per cent to 10,555.81.
The Kuwait All Share index closed 0.41 per cent lower at 5,163.46.