UAE markets decline as retail investors continue to book profits amid oil concerns

Dubai: UAE shares declined on Thursday as retail investors continued to book profits amid concerns surrounding the drop in oil prices.

"The continuing volatility is being caused by retail investors, who are booking profits the day after there is some rise in the market," said Amro Diab, head of GCC institutional sales at EFG-Hermes.

"Q4 results have already been factored in, so this is simply profit taking based on the couple of days the markets rose in the new year."

The Dubai benchmark dropped 2.39 per cent to close at 1728.92 led by real estate stocks. The real estate index tumbled 6.79 per cent and no stock in the sector was spared. Emaar Properties lost 7.28 per cent to close at Dh2.42.

Others which declined included Union Properties, Deyaar Development and construction giant Arabtec.

"I think what is happening is retail investors have invested in the property market and they feel the sqeeze very acutely. And it is more the flippers among them who are the worst hit who cannot sell the properties in a market that has come to a standstill. That is why they feel that the property stocks cannot perform any better than what they are now," Diab said.

The oil prices dropping to less than $43 added to the investors' concerns, he added. Emirates NBD, however, was among the gainers, closing 3.60 per cent higher at Dh3.45.

The Abu Dhabi Securities Exchange Index slipped 0.54 per cent to 2527.41. Banks, including National Bank of Abu Dhabi, Bank of Sharjah, and Commercial Bank International Bank, fell 1.59 per cent, 6.74 per cent and 9.79 per cent respectively.

Real estate stocks rose. Aldar Properties advanced 1.14 per cent to Dh4.44 and Sorouh Real Estate rose 4.85 per cent to Dh4.11.