Dubai: Traders resorted to selling rallies in Emaar Properties, indicating bearishness in the stock.
Emaar Properties rose to a high of Dh4.86 on Tuesday, but faced selling pressure and lost 3.3 per cent from its high.
On Wednesday, Emaar Properties closed 1.26 per cent lower at Dh4.70.
“Profit-taking would continue in Emaar and the stock may head towards support level of Dh4.55,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said in a note.
Emaar shares have shed more than 6 per cent from a four-month high of Dh5.02, struck on February 27. This followed a strong performance in the stock since February 13, accumulating 28 per cent in gains.
The Dubai Financial Market general index closed at 2,599.82, up 0.05 per cent.
Selling was seen in DIB as the share will turn ex-dividend. Dubai Islamic Bank closed 0.20 per cent lower at Dh5.05.
“It would have been expected that DIB finds higher ground ahead of its dividend, considering the attractive yield, however investors seem to be preferring caution and perhaps focusing more on potential capital gains from undervalued equities or those with strong positive momentum,” Issam Kassabieh, senior financial analyst at Menacorp said.
Aramex jumped 9 per cent after a unit of Australia Post sold its stake in the logistics company.
Aramex closed at Dh4.78, and was the most active stock in trade, contributing 57 per cent of the total traded value of Dh347 million.
In other stocks, Dubai Investments closed 1 per cent higher at Dh1.34.
Abu Dhabi index
“The banking sector is not providing any support following the drop from recent highs. Investors will be looking at first quarter earnings soon which could move the market,” Kassabieh said.
Etisalat fell 4 per cent to end at Dh16.04.
Banking stocks such as Abu Dhabi Islamic Bank closed 2.43 per cent lower at Dh4.42. Aldar saw continued buying and closed 2.12 per cent higher at Dh1.93.
Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.21 per cent lower at 4,074.27.
The Kuwait all-share index closed 0.02 per cent lower at 5,302.50.
The Bahrain index closed 0.44 per cent higher at 1,411.21.