UAE markets dip slightly as part of a slight correction following last month's aggressive rally and after pressure from US and European markets.
UAE markets slightly down after strong rally last month
UAE markets dipped slightly yesterday as part of a slight correction following last month's aggressive rally and after pressure from US and European markets.
"We're still in a correction phase as a result of the rise in the [UAE] indexes in the third quarter," said Saad al Chalabi, an institutional trader at AlRamz Securities based in Abu Dhabi.
"The news is thin on the ground here and international markets are down."
Europe's FTSE 100 Index dropped 0.4 per cent to 5,570.08 in early trading yesterday, while the S&P Composite Index was trading flat at 12,363.08.
The Dubai Financial Market General Index was down 0.4 per cent to 1,686.52, while the Abu Dhabi Securities Exchange General Index dropped 0.3 per cent to 2,664.23.
After the close of trading, the Dubai contractor Arabtec Holding said its Saudi subsidiary won a 5 billion Saudi riyal order to build 5,000 villas for the Saudi Binladin Group in the Eastern Province.
Arabtec shares were down 0.9 per cent to Dh2.01 yesterday but brokers said they expected its shares to increase as a result of the news.
Dubai's Cityscape Global event started yesterday in Dubai but property shares remained subdued amid low volumes.
In Dubai, Emaar Properties fell 0.8 per cent to Dh3.72 and Deyaar Development lost 1.5 per cent to 32 fils. In Abu Dhabi, RAK Properties added 2.3 per cent to 43 fils and Aldar Properties lost 2.4 per cent to Dh2.44.
Elsewhere in the region, Kuwait's measure lost 0.5 per cent to 6,947.10 and Bahrain's index added 0.4 per cent to 1,455.90. Oman's bourse added 0.3 per cent to 6,520.14 while Qatar's bourse lost 0.1 per cent to 7,712.61.
The Saudi Tadawul All-Share Index dipped 0.3 per cent to 6,395.49.