Arabtec Holding weighed down Dubai's stock market yesterday as investors sold shares amid valuations that analysts said were unjustifiably high.
Arabtec, the builder behind the Burj Khalifa, the world's tallest building, fell 4.7 per cent to Dh3.43. The Dubai Financial Market General Index fell 0.7 per cent to 1,639.44.
Arabtec, which has risen more than 100 per cent this year, is trading at 30 times earnings, compared with regional peers that are trading at six to nine times earnings.
"Arabtec is not a cheap stock and has reached a very dangerous price," said Fadi Al Said, a senior fund manager at ING Investment Management in Dubai.
Emaar Properties rose 0.3 per cent to Dh3.26. It reported a first-quarter profit of Dh606 million, a 44 per cent rise from last year. Analysts polled by Bloomberg expected the company to report a profit of Dh566m.
"Emaar's diversification strategy, in terms of revenues, makes it among the most resilient real estate plays in the market," said Marwan Shurrab, the chief trader at Gulfmena Investments in Dubai. "Despite the fact that markets are taking time to turn around, Emaar continues to outperform because of its recurring income."
The Abu Dhabi Securities Exchange General Index rose 0.1 per cent to 2,512.17.
Kuwait's measure was little changed at 6,336.50, Bahrain's gained 0.2 per cent to close at 1,148.50, Oman's MSM 30 Index advanced 0.5 per cent to 5,870.75, and Qatar's QE Index added 0.3 per cent to finish at 8,687.83. The Saudi Tadawul All-Share Index fell 0.6 per cent to 7,555.77.
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