Dubai: The Dubai stock benchmark tumbled to its biggest one-day drop since March 2012 as investors continued to shun risk ahead of the MSCI decision on Wednesday to upgrading the UAE into emerging market category.
The DFM General Index dropped 2.30 per cent to 2,344.76 amid declining turnover, which fell to Dh595.84 million from Sunday’s Dh816.67 million. Stocks across the board slumped, with real estate and banks leading the decline.
“Today’s pullback is mainly due to profit-taking after the sharp run that we have seen,” said David Varghese, senior fund manager at Emirates NBD Management. “Regarding the MSCI announcement, it appears that the UAE has a better chance of getting upgraded but the poor performance of Egypt and Morocco [two Mena countries that are already in the MSCI Emerging Market Index] might affect the decision. We might see some buying tomorrow as the MSCI decision is expected on Tuesday evening.”
Emaar Properties, the stock that recorded the highest turnover of Dh123.70 million, was down 2.27 per cent to Dh5.60, taking its five consecutive day loss to 8.02 per cent. Other stocks to fall included Arabtec, which shed 0.49 per cent, Dubai Investments, decreasing 5.10 per cent, Dubai Financial Market, losing 3.52 per cent, Depa and Aramex tumbling 8.86 per cent and 6.78 per cent respectively.
Abu Dhabi Securities General Index declined 0.95 per cent to 3,556.40, led by financial and investment services and real estate stocks.
Aldar Properties and Sorouh Real Estate fell for the second straight day.
First Gulf Bank shed 0.99 per cent to close at Dh15.80. Telecom major Etisalat was unchanged at Dh11.80.