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Shares Weighed Down by Global Equities

DUBAI — UAE shares declined on Thursday pulled down by weakness in global equities, following an overnight decline on Wall Street, prompting investors to turn cautious ahead of earnings results of bigger companies.

Emaar Properties, the most heavily-traded stock in the Dubai bourse, inched up by 0.2 per cent to Dh4.61. After trading hours, the Middle East’s biggest property developer disclosed that its third quarter net income stood at Dh655 million, a turnaround from its loss of Dh417 million a year earlier.

Most construction and property-related stocks gave back recent gains. Arabtec Holding, the country’s biggest construction company, dropped by 1.7 per cent to Dh3.40.

Deyaar Development which posted a 74 per cent plunge in its third quarter profit, lost 1.2 per cent to Dh0.83, extending losses this week to 5.8 per cent.

The main index of the Dubai Financial Market shed 0.6 per cent to 2,244.03, and lost by 4.5 per cent from the previous trading week after ending lower in four out of the five sessions this week. The benchmark index of the Abu Dhabi Securities Exchange declined by 1.2 per cent to 3,119.56, the index was down by 3.7 per cent from last week’s session.

“It is still the major equities worldwide that influenced trading in the local markets.

On the other hand, some investors took money off the table after making gains in previous rallies and opted to wait for the major companies to report quarter results.

The results that have come out so far are in line with expectations,” said Vyas Jayabhanu, head of investments at Al Dhafra Financial Brokerage.

Asian and European stocks were weaker on Thursday after profit-taking hit Wall Street on Wednesday.

Sentiment turned gloomy after data showed China’s economy grew at a slightly slower than expected pace in the third-quarter.

United States stocks fell overnight, led by financials on a ratings downgrade for the Wells Fargo bank, offsetting strong Credit Suisse results.

Oil prices also retreated from its $82 a barrel one-year peak on Wednesday. New York’s main contract, light sweet crude for December delivery, fell $1.28 to $80.09 dollars a barrel.

Gulf countries supply about 20 per cent of world crude oil demand.

“Trading next week will be tight, with some investors unwilling to take new positions prior to announcements of new earnings by the blue chips,” said Jayabhanu of Al Dhafra.

In Abu Dhabi, sector leader Aldar Properties fell by 2.1 per cent to Dh6.13. Second-ranked Sorouh Real Estate gave up 3.1 per cent at Dh3.80, while Ras Al Khaimah Properties declined by 2.4 per cent to Dh0.79.

rocel@khaleejtimes.com