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Dubai, Abu Dhabi Shares End Six-day Rally

DUBAI — UAE shares dropped, ending a six-day rally, led by Emirates Telecommunications Corp. and Arabtec Holding PJSC, as crude oil fell below $70 a barrel late last week.

Emirates Telecommunications, the UAE telephone-service provider known as Etisalat, lost the most in five months after gaining 13 per cent last week. Arabtec, the country’s biggest construction company, fell as much as 2.6 per cent. Abu Dhabi’s ADX General Index dropped for the first time since Sept. 2, retreating 1.4 per cent to 3,018.14. Dubai’s measure slid 0.5 per cent.

“The markets need to take stock and may flush out some short-term traders,” said Ali Khan, head of cash-equity trading at Dubai-based Arqaam Capital Ltd.

The 3.7 per cent slump in crude prices to $69.29 a barrel on Sept. 11 is also hurting investor confidence, Khan added. Abu Dhabi’s benchmark index added 5.9 per cent last week, climbing to its highest level this year. Dubai’s gauge gained 8.6 per cent during the six-day rally. In the U.S., the Standard & Poor’s 500 Index posted its biggest weekly gain since July helped by rising forecasts for oil demand, which boosted energy companies. Oil prices have more than doubled from a December low of $32.40, allowing Gulf markets to bounce back from the worst financial crisis since the 1930s.

Etisalat fell 4.1 per cent to Dh11.75, the biggest decline since April 1. Arabtec dropped 1.6 per cent to Dh3.04.
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