x Abu Dhabi, UAETuesday 25 July 2017

Dubai leads markets down

Markets Wrap: The DFM leads the UAE's stocks down as investors speculate Sunday's gain was overdone.

Arabtec shares fell on the Dubai Financial Market. Silvia Razgova / The National
Arabtec shares fell on the Dubai Financial Market. Silvia Razgova / The National

DUBAI // The Dubai Financial Market General Index led UAE shares lower amid speculation Sunday's gain was overdone and after Abu Dhabi's Aldar Properties announced job cuts.

Arabtec Holding, the country's biggest construction company, fell the most in almost two weeks. Aldar, Abu Dhabi's largest property developer by market value, lost 0.9 per cent.

Dubai's benchmark index dropped 0.6 per cent, the most since October 18, to 1,408.06. The measure surged 2.6 per cent on Sunday, bringing its three-day advance to 4.6 per cent. It has lost 1.7 per cent this month.

The Abu Dhabi Securities Exchange General Index declined for the first time in six days, losing 0.3 per cent and bringing its drop for the month to 1.3 per cent.

"The drop is a mix of profit-taking and the correlation to international markets," said Tariq Qaqish, the deputy head of asset management at Al Mal Capital. "Medium-term investors would see this correction as an entry opportunity."

Emerging-market stocks fell, paring the benchmark index's biggest monthly increase since May 2009, on signs of declining company earnings and after China's premier vowed to maintain property lending curbs. Arabtec retreated 1.4 per cent, the most since October 18, to Dh1.38. The company said third-quarter profit amounted to Dh39.1 million. It did not give a comparative figure for the year-ago period. Bloomberg News data show the company had a profit Dh6.8m in the third quarter of last year.

Crude for December delivery dropped as much as 1.2 per cent to US$92.25 a barrel in electronic trading in New York.

Aldar slid to Dh1.06. The company will cut 105 jobs, it said.

Elsewhere, Qatar's QE Index fell 0.3 per cent; Saudi Arabia's Tadawul All-Share Index dropped 0.1 per cent and Bahrain's benchmark lost 0.2 per cent. Oman's MSM30 Index gained 0.3 per cent and Kuwait's gauge added 0.2 per cent.

* Bloomberg News