UAE bourses see profit-taking ahead of risk

Amid global concerns of the Euro crisis and the Korean conflict traders on UAE bourses continued to book profits rather than speculate during a mixed day for the markets.

Stock markets in the Emirates were mixed today as a recent bout of profit-taking continued to play on shares.

Political tensions in Korea and euro-zone debt worries also impact local markets.

The Dubai Financial Market (DFM) General Index fell 1.04 per cent to 1,673.82 points and the Abu Dhabi Securities Exchange Index closed flat at 2,752.97 points.

National Bank of Abu Dhabi reflected a downward trend in the banking sector and dropped 0.80 per cent to Dh12.35. Abu Dhabi's biggest bank yesterday announced a new head of corporate banking, Vasgen Edwards, who joins from Lloyds Banking Group.

Dana Gas, the most actively traded stock in Abu Dhabi slid 2.6 per cent to Dh0.73.

Property stocks in the Emirate were mixed. Aldar Properties fell 1.33 per cent lower to Dh2.23, but Rak Properties closed flat at Dh047.

Arkan Building Materials, one of the only positive movers in early trading maintained the upward momentum as it gained 5.6 per cent to Dh2.06.

In Dubai, Emaar Properties slipped nearly 2 per cent to Dh3.62 and Aramex closed 1.87 per cent lower to Dh2.10. Commercial Bank of Dubai was one of only three gainers on the exchange as it rose 3.2 per cent to Dh3.20.

"Everybody is now resigned to a correction of profit taking…there are no incentives to make people buy and the direction we will be moving in is sideways," said Mohammed Ali Yasin, the chief investment officer at CAPM Investments.

Global tensions have put pressure on investors leading to a bout of selling but investors have been comforted by the positive open of Asian markets, Mr Yasin added.

Elsewhere in the region: Qatar gained 0.3 per cent to 8,148.30; Oman slipped 0.3 per cent to 6,534.94; Kuwait increased 0.2 per cent to 6,935.00; Bahrain fell 1.06 per cent to 1,436.99 and the Saudi Tadawul All-Share Index closed 0.3 per cent down to 6,275.48.