Profit-booking drags Dubai shares down

Abu Dhabi: Dubai stocks continued their decline yesterday as investors are still pocketing short-term profits.

The benchmark index retreated by 1.3 per cent to 4,356.81 on relatively low volumes, with Dh793.5 million worth of shares changing hands.

"Profit-booking is still taking place, while small investors who rely on credit are falling under the pressure of the high net-worth players who are dragging the prices down to their favour," commented Hamood Abdullah, general manager of Emirates International Securities, who expects the market to bounce back in less than a week.

"When these high end investors step back they will drive the market up again," he said.

Emaar Properties, the largest listed real estate developer in the UAE, fell by 1.26 per cent back to the Dh11.80 level, while Dubai Islamic Bank (DIB) plummeted by almost 2 per cent to end the session at Dh9.65.

In Abu Dhabi the index recovered marginally by 0.27 per cent to close at 3,527.16 on account of the strong gains by the index's heavy weight, etisalat advanced by 2.93 per cent to Dh19.30.

Arkan, the new building material producer continued to attract investors with more than Dh251 million worth of shares changing hands, gaining 3.31 per cent to close at Dh1.56.

"Such low value shares are the typical playground for speculators, who seem to be at the driver's seat in Arkan's rally," explained Abdullah.

Profit booking is still apparent in the real estate sector, with the three listed developers losing ground on relatively lower volumes. Sorouh Real Estate fell by 3.83 per cent to Dh4.02, while Aldar Properties and Ras Al Khaimah Properties lost 1.91 and 3.53 per cent to close at Dh6.68 and Dh1.64 respectively.

National Bank of Abu Dhabi retreated by 1.86 per cent to Dh21.10, offsetting the effect of etisalat's strong gains on the index.