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Dubai, Abu Dhabi bourses fall 3pc each

DUBAI - Shares in Dubai and Abu Dhabi fell heavily yesterday at over three per cent each to close at 5,868.35 and 4,691.76 respectively, as stocks also dropped in other Gulf markets due to speculation of overpricing. Abu Dhabi's main index had trimmed its gain to 13 per cent since the beginning of last month.

The index of 29 companies that traded on the Dubai Financial Market (DFM) slumped 3.2 per cent, posting 491.6 million shares valued at Dh2.4 billion.

Twenty-three companies had declined, five had advanced and one was unchanged.

Falling 5.1 per cent to close at 5,586.54 points, the utilities sector trailed eight other sub-indices on DFM followed by the investment sector with a slide of 4.1 per cent at 7,874.31 and the transportation sector, which slipped 3.7 per cent at 961.29. There were no gainers, although the common staples sector was flat.

UAE's second-biggest home finance provider by market value, Tamweel, ended at DFM's bottom-rung with a decline of 7.1 per cent from Dh7 to Dh6.50 followed by Islamic Arab Insurance, which decreased 6.5 per cent to Dh3.75 and the Middle East's only publicly traded stock exchange, DFM Co, which fell 6.2 per cent to Dh5.46.

Tamweel said in a statement yesterday that its profit for the fourth-quarter had almost quadrupled to Dh207 million from Dh53.8 million a year ago due to the increased demand for Islamic mortgages in a robust economy.

Dubai-based construction company Arabtec Holding slid 2.7 per cent from Dh11.20 to Dh10.80, although its shares have still gained by 16 per cent this year. Its fourth-quarter net income almost tripled to Dh151 million as it embarked on regional expansion.

Gulfa Mineral Water topped DFM with a jump of 10 per cent from Dh2 to Dh2.20 followed by Oman Insurance Co with a gain of 4.8 per cent to Dh11 and Arab Insurance Group, which advanced 2.4 per cent to Dh3.45.

The index of 42 companies on the Abu Dhabi Securities Market (ADSM) dropped 3.1 per cent following 5,149 trades, with shares value of Dh907.1 million.

The consumer sector fell 7.4 per cent to close at 1,908.06 points while the healthcare sector gained 0.2 per cent to 1,937.45.

Emirates Driving Co and Bank of Sharjah Convertible Bonds were the biggest losers with a decline of 9.8 per cent each to Dh5.13 and Dh128.29 respectively while Oman & Emirates Investment Holding Co topped ADSM with a jump of 9.4 per cent to Dh35.