Dubai’s bourse fell from its recent peak with losses across multiple sectors as investors booked gains from the recent rally, and Abu Dhabi extended its decline.
The Dubai’s main index dropped 3.7 % to 1,689.18 points, down from Sunday’s 16-month closing high. Analysts were calling for a correction in the market, stating the sharp rally was not healthy.
“Dubai’s index formed a doji candle on Monday; observing such a candle after a long rally usually signals that a correction is approaching, and sure enough the index fell today, ahead of resistance at 1,800 points,” said Sleiman Aboulhosn, assistant fund manager at Al Masah Capital. A doji candle is where the open and close price are identical or almost identical. Dubai’s market closed flat on Monday.
Dubai Financial Market fell 6.5%, Deyaar Development declined 9.2 % and Emaar Properties lowered three %. Contractor Arabtec ended 7.1 % lower. Abu Dhabi’s Aabar Investments, which scrapped a $1.7 billion deal to take a majority stake in Arabtec two years ago, has raised its holding in the builder to 5.28 %.
Abu Dhabi’s benchmark ended 0.6 % lower at 2,610 points, down for a second session from Sunday’s seven-month high. Banks and property stocks led the decline with First Gulf Bank (FGB) down 1.2 %, Sorouh Real Estate slipping 5.5 % and Aldar Properties shedding 4.7 %, reported by Reuters.
“Abu Dhabi’s index fell for a second day driven partly by FGB and we can see a similar trend in the capital as in Dubai, i.e. profit-taking,” Aboulhosn added.
Elsewhere, Qatar’s benchmark fell 0.7 % to 8,666 points, while Kuwait’s index gained 0.3 % to close at 6,221 points, its highest close since July 2011.
The Kuwaiti government named three new commissioners to the Gulf Arab state’s fledging Capital Markets Authority (CMA), ending a protracted dispute.