DUBAI ó Dubaiís benchmark stock index led declines among Gulf markets on investor speculation gains this week were overdone.
Shuaa Capital PSC, an investment bank controlled by Dubai’s ruler, dropped the most since March 6. Dubai Investments, the owner of stakes in more than 40 companies, fell for the second time this week. The DFM General Index lost 0.5 per cent to 1,683.41 at the 2:00 p.m. close in the emirate, trimming its advance this week to 4.5 per cent. The Bloomberg GCC 200 Index fell less than 0.1 per cent.
Dubai’s index, which tumbled 17 per cent in 2011, advanced 24 per cent so far this year, the most in the six-nation Gulf Cooperation Council, which comprises oil producers Saudi Arabia, Qatar, Bahrain, Oman, Kuwait and the UAE.
“Investors are taking profit amid a good run this week and this year,” said Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital.The MSCI Emerging Markets Index fell 0.1 per cent. Most European stocks rose ahead of reports on American jobless- benefit claims and manufacturing.
The Stoxx Europe 600 Index advanced 0.2 per cent to 270.88 at 9:43 a.m. in London, extending the highest level since July.
Dubai will attract more institutional investors as its property market recovers, Mark Mobius, who oversees about $50 billion as executive chairman of Templeton Asset Management Ltd.’s emerging markets group, said last week. “We expect to see more regional and international investors coming into the market,” Qaqish said.
Shuaa Capital retreated 4.1 per cent to 90 fils. Dubai Investments tumbled 3.3 per cent to 89 fils. ADX General Index fell 0.2 per cent. Qatar’s QE Index advanced 0.4 percent and Bahrain’s measure added 0.3 per cent.
Oman’s MSM30 Index fell 0.4 per cent. Saudi Arabia’s stock market remained closed for the weekend. —