Dubai's financial services sector takes a beating after the earnings releases by two of the emirate's big banks, though Abu Dhabi scrapes through.
UAE bourses' contrasting courses
The Dubai Financial Market (DFM) recorded its biggest intraday losses since December after worries resurfaced in the property and banking sectors.
However, the sell-off yesterday did little to dent a rise on the capital's stock market, which put the Abu Dhabi Securities Exchange (ADX) General Index at a 12-week high.
The DFM General Index fell 1.2 per cent to 1,435.96, while the ADX General Index rose 0.4 per cent to 2,476.62.
Some of Dubai's banks and property companies suffered sharp losses and hit trading limits after the release of earnings.
Shares in Dubai Islamic Bank, the emirate's second-biggest lender, fell 4.1 per cent to Dh2.10 each, after it reported yearly profits of Dh1 billion, with a 25.2 per cent increase in line with consensus earnings.
"They were overshooting," said Talal Touqan, the head of equity research at AlRamz Securities. "They were around 15 per cent up, now they're seeing a correction to the price."
Union Properties fell 9.8 per cent after reporting losses widened 2.5 per cent to Dh1.56bn last year. Its shares closed at 28.4 fils.
Mashreq's stock fell 9.9 per cent to Dh91.45 each. It reported its lending book had contracted for the fourth straight year, despite annual profits increasing 2.1 per cent to Dh820 million.
Aramex's shares slid 0.5 per cent after it reported a 4 per cent increase in yearly profit to Dh211.5m.
First Gulf Bank led gains in the capital, with shares rising 1.4 per cent to Dh17.70 each. The lender, which reported a Dh1.5bn dividend payout last month, has risen 14.5 per cent so far this year.
Oil prices increased, with Brent crude futures climbing 68 cents to US$111.26 per barrel.