UAE markets decline on Dana Gas payment worries, while investors book profits in Dubai after a rally fails to get a second wind.
Dana leads UAE market retreat
Dana Gas fell to its lowest level in a week after the UAE gas developer and producer said unpaid bills from clients almost doubled last year.
Dana's shares fell 2 per cent to 48 fils, the lowest level since March 11.
Total receivables increased to US$501 million from $255m in 2010, the company said yesterday in its full financial statements posted on the website of the Abu Dhabi Securities Exchange (ADX). The company has $1 billion of debt due in October.
Property stocks also fell. Aldar Properties and Sorouh Real Estate, two of the capital's biggest developers, fell 1.4 per cent to Dh1.32 and 3 per cent to Dh1.27, respectively.
The ADX General Index fell 0.7 per cent to 2,586.53.
In Dubai, Emaar Properties declined 2.6 per cent to Dh2.97 after the developer announced a 10 fils-per-share cash dividend for last year.
"Many investors were waiting for Emaar's dividend announcement and the last leg in the market rally, which unfortunately did not happen," said Marwan Shurrab, the chief trader at Gulfmena Investments in Abu Dhabi. "They started selling and taking risk off the table."
The Dubai Financial Market General Index fell 1.4 per cent to 1,643.31. The index, which rose as much as 27 per cent this year, has pared some of its gains of late. Elsewhere in the region, Kuwait's and Bahrain's measures were little changed at 6,228.90 and 1,146.96, respectively. Oman's MSM 30 Index rose 0.4 per cent to 5,921.82. Qatar's benchmark slipped 0.4 per cent to 8,646.60. The Saudi Tadawul All-Share Index closed down 1.2 per cent at 7,518.66.