Dubai index leads losses in Gulf region

25/05/2015 01:47 AST

Dubai index led the losses in Gulf region as real estate counter was battered. Abu Dhabi index also fell.

The Dubai Financial Market General Index ended 1.67 per cent lower at 4,049.98, leading the decline in the region.

Real estate companies led the losses in trade. Damac Properties ended 3.45 per cent lower at Dh3.08, while Emaar Properties ended 1.46 per cent lower at Dh8.08. Arabtec shares ended 3.32 lower at Dh2.33 on speculation that Egypt has ended talks on its 1 million housing project.

“Arabtec fell because of end of talks with Egypt and the other stocks were due to fall anyway because the first quarter results and people are looking forward to the holiday season ahead,” Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities told Gulf News.

In other stocks, Marka rose much as 3 per cent before ending 1.60 per cent higher at Dh1.27 after the retailer said it expects earnings of Reem Al Bawadi, a restaurant chain that it acquired earlier this month for Dh315 million, to grow by more than 25 per cent annually in the coming years.



Correction?

“We are going reducing portfolio flows in the stock market and pressure to downside till next month,” Manibhandu said, adding we are not going to see markets pickup unless we begin to price in second quarter numbers.”

Companies will start publishing second quarter results by mid July.

Manibhandu reckons “if the index is not able to hold up 4,000 levels we are going to see levels of 3,800”.

The Abu Dhabi Securities Exchange General Index ended 0.73 per cent to be at 4,616.51. “In absence of news, the direction of travel is down more than up,” Manibhandu added.

Aldar Properties ended 3.16 per cent lower at Dh2.76, while Eshraq Properties ended more than 4 per cent lower at Dh0.77.

Elsewhere, Saudi’s Tadawul ended 0.36 per cent lower at 9,733.23 led by losses in Saudi Basic Industries.

“The downside in Saudi Arabia is less compared to the Abu Dhabi index so that tells me that traders are less concerned about the recent events in that country,” Manibhandu said, adding that “after the news of opening up of market to foreigners, the Tadawul index would be weaker as traders are expected to take profit more aggressively.”

Saudi Tadawul has been the top performer in the Gulf Region with 17 per cent gains so far in the year.

Saudi Basic Industries was 2.25 per cent lower at 102.75 Saudi riyals.

Elsewhere in the Gulf, Qatar Exchange Index ended 12,443, while Muscat Securities MSM 30 index ended 0.12 per cent lower at 6,375.43.

Gulf News