Dubai winds up lower in stocks while investors eye-up profit
Dubai's bourse fell yesterday, giving back gains from the previous day's rally, as investors booked profits on property stocks and weak earnings from Dubai Investments' dampened sentiment.
Shares in Dubai Investments, in which sovereign fund Investment Corporation of Dubai owns 11.5 per cent, fell 4.7pc from a three-month high. The company's second-quarter net profit dropped 54pc amid lower
Dubai's index ended 1pc lower, giving back gains from a 13-week peak on Sunday.
"Dubai Investments' numbers soured market sentiment and there's profit-taking in general because uncertainties still persist on euro zone debt and economic growth worries in China and the U.S.," said a Dubai-based trader who asked not to be identified.
Investors booked profits on property stocks which have rallied in the wake of estimate-beating earnings from top real estate firms. Emaar Properties dropped 1.2pc while developer Deyaar sank 5.3pc.
Abu Dhabi's Aldar Properties and Sorouh Real Estate also declined 2.4 and 0.9pc respectively.
The UAE capital's benchmark dropped 0.3pc.
In Bahrain, the measure declined 0.5pc to 1,090 points hurt by poor performance of the banking and service
Elsewhere, Qatar's measure recovered early-session declines and ticked up 0.05pc to 8,345 points, its highest close since May 31.
"Over the past couple of months, we are seeing the emergence of a reverse head and shoulders (chart) formation - this is a bullish sign after a drop (between April and June)," Zaid Al Nafoosi, institutional sales trader at QNB Financial Services, said of the Qatar market.
Nafoosi said the market was testing a range between 8,320 and 8,360.
"(That) has been a resistance for quite some time. If we break that, we should be heading to 8,533 levels," he said.
National Leasing Holding gained 1.5pc and Qatar Co for Meat and Livestock Trading rallied 2.4pc.
Retail traders, dominating Qatar's market recently, are betting on mid- and small-caps for short-term gain, analysts say.
Barwa Real Estate slips 0.7pc, extending declines since it said its first-half net profit fell 21.1pc.
Saudi's benchmark and Kuwait's index ended near-flat.