x Abu Dhabi, UAEThursday 27 July 2017

UAE investors book profits ahead of Eid

With Eid approaching UAE investors chose profits ahead of risk as bourses saw slower business today ahead of the trading holiday.

UAE bourses dropped today as investors continued to book profits ahead of the Eid holiday next week when trading closes.

The Abu Dhabi Securities Exchange General Index inched 0.1 per cent lower to 2,758.44 points as speculation on whether Aldar Properties will secure government funding put pressure on stocks. It fell 3.4 per cent to Dh2.26.

Analysts said that a "de-risk situation" will encourage markets, particularly the property sector, to move post-Eid.

"We're going to see a de-risk situation very similar situation to what happened with Dubai government bond," said Yazan Abdeen, a fund manager at ING.

"The previous risk of investor dilution in Aldar was high but there is no risk from the Abu Dhabi government diluting shareholders," he said.

Waha Capital dropped 1.3 per cent to Dh0.78 as news that the investment holding company completed its acquisition of a 20 per cent stake in Dutch-based AerCap Holding.

The Dubai Financial Market (DFM) General Index fell 0.86 per cent to 1,691.65.

Air Arabia lost 1 per cent to Dh0.79 after it reported slightly better than expected third quarter net profit of Dh136 million, compared with Dh144 million in the year earlier.

Union Properties was one of the top losers of the day, dropping 4 per cent to Dh0.41 as its third quarter loss almost trebled from the year-ago period.

Other GCC markets were mixed: Qatar gained 0.4 per cent to 8073.72; Bahrain rose 0.2 per cent to 1,450.41; Kuwait fell 0.6 per cent to 6950 and Oman added 0.6 per cent to 6620.55. The Saudi Tadawul All-Share Index was closed for the day.