Emaar leads Dubai declines

Markets Wrap: Stocks in Dubai fell yesterday as investors sought to lock in profits generated by recent gains in the market.

The recently concluded Cityscape has lifted property stocks in the last few days. However Emaar fell x per cent yesterday. Jeffrey E Biteng / The National
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Stocks in Dubai fell yesterday as investors sought to lock in profits generated by recent gains in the market.

"Investors are realising profits. It's so clear," said Talal Touqan, the head of research at Al Ramz Securities. "The market is up about 15 per cent since the beginning of June and rose 5 per cent last week. This is profit-taking. It's exactly normal."

The Dubai Financial Market General Index dropped 1 per cent to close at 1,627.09.

Emaar, the builder of the Burj Khalifa, led the decline, falling 2.1 per cent to Dh3.68. On Sunday it ended the day at Dh 3.76, its highest close since December 2010.

Property companies have benefited in recent days after investors flocked to the Cityscape property exhibition in Dubai, signalling their intention to channel money into construction industry.

Investors may also be reorganising their portfolios before the third quarter earnings season starts, Mr Touqan said. Construction companies may not have done as well as in previous quarters this year because of a reduction of working hours during the summer and Ramadan.

Other markets across the region also fell, apart from Abu Dhabi Securities Exchange General Index which was flat.

Globally, investors are concerned that growth may slow this year. While European finance ministers yesterday met in Luxembourg to discuss the debt crisis in Spain, the World Bank issued a report saying that economic growth in East Asia, including China, will be the slowest since 2001. The IMF is also likely to cut its global outlook for the year tomorrow at a meeting in Tokyo.

Elsewhere in the region, Qatar's QE Index fell 0.2 per cent to 8,481.91; Kuwait's measure slipped 0.1 per cent to 5,994.59; Oman's MSM30 gained 0.2 per cent to 5,662.10.

The Saudi Tadawul All-Share Index fell 0.8 per cent to 6,807.31.