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Abu Dhabi shares drop for second day; Dubai index rises

DUBAI — Abu Dhabi shares dropped for the second day, led by Abu Dhabi National Energy Co. and Sorouh Real Estate Co. Dubai's index rose.

Abu Dhabi National Energy, known as Taqa, slumped the most in two years. on Tuesday was the cut-off day for shareholders to be eligible for convertible bonds Taqa plans to sell next month.

Sorouh, Abu Dhabi's second-largest developer, dropped for a second day.

The Abu Dhabi Securities Exchange General Index fell 1.1 per cent to 5,063.24. The Dubai Financial Market General Index gained 0.7 per cent to 5,596.98.

Taqa, the state-controlled investment company, slumped 9.8 per cent to Dh3.41, its biggest one-day drop since June 2006. The company on June 16, in a statement to the stock exchange, said shareholders as of close of trading June 17 will be eligible to buy convertible bonds next month.

Sorouh fell 2 per cent to Dh9.71, bringing the two-day drop to 2.2 per cent.

Saudi Arabia's Tadawul All-Share Index, the largest stock exchange in the Middle East and North Africa, dropped 0.4 per cent.

Zain Saudi Arabia, a unit of Kuwait's biggest mobile-phone company, declined for a second day, losing 3.7 per cent to 26.25 riyals, after EFG-Hermes Holding SAE recommended selling the company's shares on Tuesday.

“It will be very challenging for Zain Saudi to build market share in Saudi Arabia given that the mobile penetration rate already exceeded 100 per cent in 2007,” EFG-Hermes analysts wrote in a note to clients on Tuesday.

Saudi Basic Industries Corp., the largest chemical's maker by market value, fell 1.2 per cent to 150 riyals.

The Muscat Securities Market 30 Index lost 0.7 per cent. In Qatar, the Doha Securities Market Index declined 0.9 per cent, and the Bahrain All Share Index dropped 0.2 per cent. The Kuwait Stock Exchange Index gained 0.2 per cent.