x Abu Dhabi, UAEWednesday 26 July 2017

Cautious investors take profits on Fed meeting

The country's stocks slumped yesterday as cautious investors took profits ahead of the US Federal Reserve's policy meeting

The country's stocks slumped yesterday as cautious investors took profits ahead of the US Federal Reserve's policy meeting today.

The Dubai Financial Market (DFM) General Index dipped 2.2 per cent to 1,742.14 points, dragged down by property stocks.

Emaar Properties, the builder of the world's tallest skyscraper, lost 3.1 per cent to Dh3.75.

The Kuwait-based investment company Ekttitab Holding held on to Monday's momentum, which saw it rise 15 per cent in intraday trading, and yesterday rose 5.5 per cent to 56 fils. In Abu Dhabi, Aldar Properties continued to drag on stocks after the announcement on Monday that the company's chief executive, John Bullough, had retired.

The share closed down 6.1 per cent at Dh2.40 and was the most active stock by volume on the Abu Dhabi Securities Exchange (ADX). Gulf Cement was the biggest gainer of the day, rising 6.4 per cent to Dh1.67. The ADX General Index slid 1.4 per cent to 2,763.66 points.

Analysts forecast bourses to pick up over the next few months as the effects of positive global economic results and the rally in crude oil take hold. "[The UAE] is lagging behind and although volatility will remain high, by the end of the year I think we are going to be in positive territory," said Alfred Fayek, the head of MENA equity sales at EFG-Hermes.

Bourses elsewhere in the region were mixed: Oman fell 1 per cent to 6,478.27; Qatar slipped 0.05 per cent to 7,766.24; Bahrain lost 0.1 per cent to 1,460.26; Kuwait ticked 0.7 per cent higher to 7,129.30 and the Saudi Tadawul All-Share Index gained 0.1 per cent to 6,372.71.

farah.halime@thenational.ae