UAE shares ease on profit-taking

The UAE stock markets slid slightly yesterday as many investors booked profits after a week of strong gains. The Abu Dhabi Securities Exchange General Index eased 0.06 per cent lower at 2,866.18. In the day's trading, Abu Dhabi National Energy Company was down 1.6 per cent to Dh1.21 a share. Sorouh Real Estate finished 1.2 per cent down at Dh2.39. The Dubai Financial Market (DFM) General Index retreated 1.3 per cent to 1,722.63.

Shuaa Capital, the UAE's largest investment bank, fell 3.6 per cent to Dh1.31 a share, while Tabreed's shares shed 4 per cent to Dh0.47. Arabtec Holding shares fell 3.4 per cent to Dh2.26 on investor reaction to the news on Sunday that Deutsche Bank had lowered its rating on the stock to "hold" from "buy". "This is a natural progression in a stronger market. The DFM had risen up to 26 per cent [in the previous five trading days], Emaar Properties over 21 per cent and Arabtec Construction had risen over 11 per cent," said Ali Khan, the managing director of Arqaam Capital, which is based in Dubai. "Nothing goes up in a straight line, profit taking is natural. This is nothing to suggest that a bearish market lies ahead."

Mr Khan said a satisfying conclusion to the Dubai World restructuring talks could be a catalyst to send the market higher. The Saudi Tadawul All-Share Index retreated 0.3 per cent and the Muscat index closed 0.4 per cent lower. The benchmark indexes in Kuwait and Qatar advanced, with gains of 0.1 per cent and 0.8 per cent respectively. Bahrain's main measure closed with a gain of 0.8 per cent. @Email:halsayegh@thenational.ae