UAE misses out on Gulf rises

The UAE's markets missed out on a boost lifting global stocks yesterday even as other Gulf bourses soared, after traders booked in profits from a brisk market rally on Sunday.

The Dubai Financial Market General Index fell 0.3 per cent to 1,399.45, while the Abu Dhabi Securities Exchange General Indexdropped 0.1 per cent to 2,470.52.

The slide snapped a four-day run of gains on both emirates' markets.

On Sunday, a string of good news on world markets pushed Dubai's index up 1.8 per cent, the biggest intraday gains since October, while Abu Dhabi's market rose 1.1 per cent.

But despite the slide on local stocks yesterday, market activity had remained healthy, said Marwan Shurrab, the chief trader at Gulfmena Alternative Investments.

"Volumes are coming back," he said. "We saw some money coming in from institutions and retail investors positioning themselves to benefit from the short-term rally. Selling pressure could be profit-taking from regional investors."

Despite gains in early trading, Emaar Properties, Drake & Scull Internationaland the mortgage provider Tamweel pulled back from their highs in Dubai.

The Abu Dhabi market gauge fell as a dip in shares of Etisalat, Abu Dhabi National Energy Company (Taqa) and Abu Dhabi Islamic Bank beat gains for other lenders expected to benefit from the boost in salaries of state workers.

All other Gulf markets rose except Bahrain.

World stocks made tentative gains and oil prices increased as geopolitical tension between Iran and the West threatened to escalate, with Brent crude futures rising $1.21 to US$111.15 per barrel.

ghunter@thenational.ae

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