Abu Dhabi shares yesterday dropped to their lowest in almost a week as investors speculated a rally this year prompted by higher 2012 results was overdone and after oil prices fell in New York.
Abu Dhabi shares retreat as investors take profits; Dubai index gains
Abu Dhabi shares yesterday dropped to their lowest in almost a week as investors speculated a rally this year prompted by higher 2012 results was overdone and after crude oil prices fell in New York.
Some of Abu Dhabi's biggest listed companies, including First Gulf, posted full-year profit that beat estimates. The earnings helped the emirate's gauge to surge 15 per cent this year, pushing the 14-day relative strength index to 72. A reading above 70 indicates to some analysts that a security or index is poised to drop. The rally this year compares with a decline of 0.2 per cent for the MSCI Emerging Markets Index in the same period.
"After most companies announced their results and dividends, traders who were in the rally to trade the news are now taking profits," said Nabil Rantisi, the managing director of brokerage at Menacorp. "The market still looks good and there is room for further upside."
Elsewhere, Bahrain's measure gained 0.7 per cent and Oman's MSM30 Index and Kuwait's gauge climbed 0.2 per cent. Qatar's stock market was closed for a holiday.
The Saudi Tadawul closed down 0.4 per cent at 6,988.07.
* Bloomberg News