Dubai's shares lost steam yesterday as investors held steady after an aggressive run triggered by corporate earnings and dividend payout announcements.
"If you compare today's performance with the rally in recent weeks, you wouldn't call it profit-taking but price stabilisation," said Sebastien Henin, a portfolio manager at The National Investor, an investment company in Abu Dhabi.
"If it was profit taking, we would have seen losses over a series of sessions. It's very positive for the medium term. It means this run wasn't speculative but very strong."
For every share that rose, three fell. Emaar, the developer behind the Burj Khalifa, fell 0.4 per cent to Dh4.74. Arabtec Holding, the region's biggest contractor, lost one per cent to Dh2.95 a share. The Dubai Financial Market slipped 0.5 per cent to 1,859.56 points.
The benchmark has risen 14.6 per cent in the last five weeks.
Investors are awaiting for a technical breakout as a catalyst for the index to move ahead.
"We are waiting for a retracement lower towards the 1,810 support level, or alternatively the break of the 1,890 resistance level, in order to reinstate 'long' positions," Mena Corp, an investment company in Abu Dhabi, said in a note to clients.
Eshraq Properties was a bright spot in Abu Dhabi, as 162 million shares changed hands. It jumped 5.4 per cent to 58 fils. RAK Properties was the second most actively traded stock in the capital. The developer rose 2 per cent to 51 fils. The Abu Dhabi Securities Exchange General Index rose 0.3 per cent to 2,908.77 points.
