Dubai bourse’ losing run stretches to day two on Arabtec decline

Shares in Dubai led losses across the Arabian Gulf for a second consecutive day on Tuesday, as retail investors sold down shares to reduce margin exposure, with Arabtec Holding continuing to weigh on sentiment.

Abu Dhabi shares were the region’s best performers, thanks to gains by Etisalat.

The Dubai Financial Market General Index fell by 1.2 per cent to 3,560.04, the index’s lowest level since early January.

“There’s a lack of news and drivers in the market after the announcements of 2016 results,” said Ali Adou, a fund manager at The National Investor in Abu Dhabi.

“Much of the selling has been retail driven in order to reduce margin exposure, which has been at high levels for the past three weeks.”

Arabtec Holding shares continued to fall, also weighing on general investor sentiment. The construction firm’s shares closed down 6.7 per cent at a new five-year low of 84 fils.

The Abu Dhabi Securities Exchange General Index closed up by 0.6 per cent, thanks to gains by Etisalat and FGB.

Etisalat’s shares closed up by 2.2 per cent at Dh18.40, after the telco said royalty rates payable to the federal government had been set at 15 per cent of revenues and 30 per cent of net income for 2017-21.

UAB shares ended the day unchanged after the bank announced a loss of Dh522.6 million for the year.

In Saudi Arabia, the Tadawul closed down 0.2 per cent, its second consecutive day in the red, led lower by Alinma Bank and Al Rajhi Bank.

The Qatar Exchange closed 0.2 per cent higher, thanks to gains by Industries Qatar and QNB.

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