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DFM Falls on Profit-taking

DUBAI — Shares in Dubai fell on Tuesday, wiping out gains in the previous session in the absence of fresh positive catalysts, and as investors begin to unwind positions ahead of the Eid Al Adha holidays.

Index heavyweight Emaar Properties, the Middle East’s biggest property developer, dropped by 2.8 per cent to Dh4.13. The Dubai Financial Market PJSC, the only stock exchange operator in the Gulf region selling shares to the public, edged down by 3.6 per cent to Dh2.13. Shuaa Capital, the country’s biggest investment bank, declined by 5.6 per cent to Dh1.69.

The benchmark index of the Dubai Financial Market slipped by 1.9 per cent to 2,070.89, while the main index of the Abu Dhabi Securities Exchange shed half a per cent at 2,893.87.

“There was a lack of positive leads at home, while Asian and European markets were weak as well, which made for an uninspiring session,” said Ali Khan, managing director of Arqaam Capital Limited.

“The markets will remain rangebound for the rest of the week, especially as we are headed for a long weekend.” Blue chip property and construction-related companies pulled down shares in both bourses. In Dubai, Arabtec Holding, the country’s biggest construction company, fell by 2.6 per cent to Dh3.04. Contractor and engineering firm Drake & Scull International, edged down by 2 per cent to Dh0.98. Deyaar Development lost by 2.8 per cent to Dh0.69, while Union Properties gave up 2.1 per cent at Dh0.92.

Abu Dhabi’s largest property developer Aldar Properties, shed 0.6 per cent at Dh5.46. Sorouh Real Estate, the emirate’s second biggest real estate company, fell by 1.9 per cent.

In other sectors, natural gas producer Dana Gas PJSC, lost nearly a per cent at Dh1.04.

Emirates Integrated Telecommunications Company or du, declined by 3.4 per cent to Dh3.11. Brokerage firm Al Mal Capital raised du to “outperform” from “market perform” and raised its target price to Dh3.99 from Dh3, saying the company will benefit from mobile subscriber growth in the UAE. Al Mal is projecting addtiional mobile subscriptions this year of 1.025 million.

“The volatility that we’ve seen in recent sessions is not yet an indication of a trend, but we can expect more sideways trading as the year draws to a close,” said Haissam Arabi, chief executive offcer and fund manager at Gulfmena Alternative Investments.

rocel@khaleejtimes.com