Markets cooled off yesterday, following the gains made during the first half of the trading sessions, as analysts believe that local equities are due for another rally.
Bourses keep rally moving
Investors sold Dubai and Abu Dhabi shares yesterday afternoon but the bourses managed to extend a rally that began last week.
The markets leapt forward yesterday morning but later gave back much of the gains. Fund managers say investors were merely taking a breather.
"It's normal profit taking - the market has been up for three trading sessions," said Haissam Arabi, the chief executive of Gulfmena Alternative Investments in Dubai.
"I don't think this is a correction. Markets are overbought but they are still being supported by healthy volume. It just needs a bit of momentum for a second wave of a rally."
The Dubai Financial Market General Index added 0.2 per cent to 1,556.31. Arabtec Holding was up 0.6 per cent to Dh1.64 at 2pm. Shares rose as much as 3 per cent at the open, the highest since February 15, after Arabtec announced the appointment of Grigoris Christofides as the chief executive of its subsidiary, Arabtec Construction.
The Abu Dhabi Securities Exchange General Index moved 0.4 per cent higher to 2,645.85. The gains were led by Dana Gas, which added 1.5 per cent to 65 fils. Aldar Properties rose 0.6 per cent to Dh1.56 a share and Sorouh Real Estate gained 2.4 per cent to Dh1.28.
Elsewhere in the region: Kuwait's index remained flat at 6,285.60; Bahrain's measure added 0.3 per cent to 1,427.21; Oman's index lost 0.1 per cent to 6,390.46; and Qatar's index added 1 per cent to 8,392.79.
The Saudi Tadawul closed 0.2 per cent higher at 6,519.76.