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Shares Retreat as Banks and Real Estate Decline

DUBAI - Shares in Dubai retreated on Monday as investors booked profits after a rally in the previous session with banks and real estate leading declines.

The Dubai Financial Market’s benchmark index finished 2.29 per cent lower at 1,440.69 as banks lost 2.02 per cent while property companies dropped
2.95 per cent.

The Abu Dhabi Securities Exchange main index inched up 0.8 percent to 2,199.64. Among Dubai index heavyweights, Emirates NBD shed the most points, losing 4.8 percent to Dh3.17 while the Dubai Islamic Bank fell 2.89 percent to Dh1.68. Index mover Emaar Properties gave up nearly half of its 6.62 per cent gains Sunday, ending 3.10 per cent lower at Dh1.87. Deyaar Development edged down 4 per cent to Dh0.48 while Union Properties dropped 3.44 per cent to Dh0.56.

“Some healthy profit taking in Dubai in the absence of any news or catalyst to prompt further gains. Two steps forward, one step back trading is the best we can hope for at the moment as day traders lock in profits where they can, and internationals stay on the sidelines,” said Matthew Wakeman, managing director of cash and equity linked trading at EFG-Hermes.Arabtec Holding, ended 2.29 per cent higher. Trading in its shares were suspended in mid-session as the company announced
 its results.

Arabtec shares surged 4.6 per cent in early trade on comments by CEO Riad Kamal that he expected this year’s turnover to match its returns in 2008 and the company is eyeing expansion in Qatar and Saudi Arabia.The company said its consolidated unaudited net profit in 2008 rose 77 per cent from a year ago to Dh945 million. Revenue more than doubled to Dh9.6 billion compared to Dh4.2 billion in 2007. Emirates Integrated Telecommunications Co. or Du’s first profitable year failed to impress investors. The stock dropped 2.17 per cent
 to Dh1.80.

Abu Dhabi’s Aldar Properties rose 2.39 per cent after its chief operating officer Sami Asad said it will push through with its current projects despite the downturn in the property market. Bigger banks like the Abu Dhabi Islamic Bank lost 4.07 per cent to Dh2.38 while Abu Dhabi Commercial Bank was down 2.61 per cent to Dh1.49. Other banks also gave up previous gains. The Commercial Bank International lost 9.8 per cent .

rocel@khaleejtimes.com