Arabtec leads DFM sell-off

The Dubai Financial Market General Index rose by half a per cent in early trading, but gave up gains in the afternoon, closing down 1.1 per cent at 3,678.81.

Shares in Dubai fell in late trading on Wednesday, despite positive results by Dubai Islamic Bank. Saudi shares rose for a fifth straight session while Abu Dhabi closed lower.

The Dubai Financial Market General Index rose by half a per cent in early trading but gave up gains in the afternoon, closing down by 1.1 per cent at 3,678.81.

Shares in Arabtec led the late sell-off, closing down by 6.3 per cent at Dh1.34, their steepest one-day fall in nine months.

The construction company held a board meeting earlier this week but has yet to specify when it plans to release year-end results. Emaar Properties and Union Properties were among the other big-name sell offs, ending off 0.9 per cent and 4.4 per cent respectively.

“There haven’t been any announcements, but people think that bad news is coming then a few people do some small sales and then suddenly everyone is following,” said Khaldoun Jaradat, a trading manager at Brokerage House Securities in Dubai.

Shares in DIB were one of just two gainers on the Dubai index, closing up by half a per cent at Dh6.14, after the bank’s fourth-quarter results rose in line with analyst forecasts.

Mashreq rose 15 per cent to Dh100.05 in early trade before being suspended ahead of the bank’s announcement of a 21 per cent drop in fourth-quarter profits.

Abu Dhabi equities were the poorest performers across the Arabian Gulf on Wednesday, closing down 1.6 per cent at 4,606.50. Etisalat acted as the main drag, closing down 1.6 per cent at Dh18.15.

In Saudi Arabia the Tadawul closed up by 0.5 per cent at 7,128.12, its highest level in nearly three weeks.