Dubai shares slumped to the lowest level in a week as traders speculated that the next bout of earnings would miss analysts' expectations.
Emaar in spotlight as DFM slides
Dubai's market dipped yesterday on concern the emirate's biggest companies would report lower than expected second-quarter results.
The Dubai Financial Market (DFM) General Index fell 1.2 per cent to 1,548.69 points, the lowest since July 3.
Emaar Properties, the developer of the Burj Khalifa, the world's tallest tower, fell 1.6 per cent to Dh3.04.
Analysts said Emaar was subject to a sell-off before an expected writedown related to its 30 per cent stake in Dubai Bank, which is now owned by the Dubai Government.
"The losses are really on the real estate side, and with Emaar there is an expectation that net quarterly numbers will be softer," said Ibrahim Masood, a fund manager at Mashreq.
The developer may write down the entire value of its Dh172.4 million investment in Dubai Bank as soon as the second quarter.
Arabtec fell 1.4 per cent to Dh1.37, the lowest since June 16, while the bourse operator DFM slipped 1.7 per cent to Dh1.19.
In the capital, the Abu Dhabi Securities Exchange General Index edged 0.1 per cent higher to 2,725.20 points.
It had initially breached a one-week high as fund managers and traders said the emirate's companies were better positioned for stronger earnings than Dubai, but then fell back.
Elsewhere, the Egyptian stock market fell sharply as persistent political upheaval kept traders at bay.
The benchmark EGX 30 index retreated 2.9 per cent to 5,118.42 points, the lowest point in two months.