Backward step follows UAE market rally

Markets Wrap: Investors booked profits yesterday on the Abu Dhabi Securities Exchange and Dubai Financial Market after a rally earlier this week.

The UAE stock markets ended in negative territory yesterday as investors booked profits after a short-term rally last week.

Du, the country's second-largest telecommunications company, lost 1 per cent to Dh2.91. Shuaa Capital, one of the UAE's biggest investment banks, declined 1.9 per cent to 63 fils a share. The Dubai Financial Market General Index was down 0.5 per cent to 1,388.68. The index has risen 5.8 per cent this week.

"Bank earnings have encouraged investor appetite," said Wadah Al Taha, the chief investment officer at Al Zarooni Group in Dubai. "The accumulation seen on Dubai's index has been amazing."

RAKBank posted a 20 per cent profit for last year to Dh1.2 billion, compared with the previous year and recommended a stock dividend of 10 per cent and cash dividend of 25 per cent.

Banks weighed on the Abu Dhabi Securities Exchange (ADX). The National Bank of Abu Dhabi, the country's second-biggest lender by assets, lost 0.4 per cent to Dh10.75 a share. National Bank of Umm Al Qaiwain dropped 9.9 per cent to Dh1.63. The ADX General Index lost 0.2 per cent to 2,370.19.

Elsewhere in the region: Kuwait's index slipped 0.1 per cent to 5,831.00; Bahrain's index was little changed at 1,141.30; Oman's MSM 30 Index added 0.2 per cent to 5,597.86; Qatar's QE Index was little changed at 8,423.94. The Saudi Tadawul All-Share Index was closed for the day.

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