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UAE Shares Retreat after Strong Start

DUBAI — UAE shares retreated after a strong start on Wednesday as investors quickly cashed in gains.

The Dubai Financial Market benchmark index gave back early gains, shedding 0.19 per cent to 1,515.69. The Abu Dhabi Securities Exchange main index slipped 0.19 per cent to 2,349.61.

Volumes were also light with short-term traders dominating the markets. Turnover in Dubai was only Dh403.7 million, while Abu Dhabi chalked up just Dh84.6 million.

“It was a dull trading in both bourses with no positive news to really push the market higher. Markets just consolidated after recent gains,” said Vyas Jayabhanu of Al Dhafra Financial Brokerage, adding that both foreign retail and institutional investors 
were out of the market.

Both bourses tracked rallies in global markets early in the session after Citgroup shares jumped 38 per cent as its chief executive officer wrote in an internal memorandum that the bank made profits in January and February after devastating five 
straight quarterly losses.

“There was a knee-jerk reaction by markets which petered out in the end as there was not enough local stimulus to hold on to gains,” said Al Dhafra’s Jayabhanu. Dubai-based Arabtec Holding surged more than 5 per cent in early trading on follow-through buying after the country’s largest construction company’s recent announcement of a new joint venture in Saudi Arabia.

It trimmed its gains towards the close to edge up 1.84 per cent to Dh1.66

Property giant and index heavyweight Emaar Properties also rose more than 5 per cent in early session, but investors cashed in quick gains. The stock ended 2.02 per cent higher to Dh2.02.

rocel@khaleejtimes.com