Smaller UAE banking shares lead decline

03/05/2017 06:05 AST

Banking stocks led UAE indexes lower on Tuesday, with most bourses across the Arabian Gulf region likewise finishing slightly down. Shares in Saudi Arabia finished slightly higher.

The Dubai Financial Market General Index closed off 0.1 per cent at 3,436.63, led lower by DIB and Emirates NBD.

Shares in Arabtec Holding closed 1.8 per cent lower at 83.7 fils, after the construction company said it planned to conclude its Dh1.5 billion rights issue by the end of May.

Emaar Properties and Dubai Investments led gains, closing up 1.2 per cent and 1.9 per cent, respectively. Smaller banking stocks led the decline in Abu Dhabi, sparked by lower profits announced at the weekend by Bank of ­Sharjah.

The Abu Dhabi Securities Exchange General Index closed 0.1 per cent lower at 4,552.88, even as more shares gained than fell.

National Bank of Umm Al Quwain led stocks lower, closing down 9.7 per cent at a six-month low of Dh2.80. Commercial Bank International and Bank of Sharjah closed off 9.7 per cent and 6.9 per cent, respectively.

"As illiquid stocks, sellers looking for other opportunities would have to sell the bids at significantly lower prices to cash out, some at limit down," said Hani Konquar, the team leader for Mena equity sales and trading at Mubasher Fin­ancial Services in Dubai.

Aldar Properties and Sharjah Islamic Bank led gainers, finishing up 2.8 per cent and 3.7 per cent, respectively. In Saudi Arabia, the Tadawul closed 0.1 per cent higher. Shares in Sabic closed 0.7 per cent lower, the day after the company reported an 80 per cent surge in first-quarter profit.

The National