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Shares Retreat; DFM Extends Losses

DUBAI — UAE shares retreated on Tuesday, with Dubai stretching losses for a fourth trading session, pulled down by property and construction related stocks, and Abu Dhabi’s Aldar Properties posting a hefty decline in its first quarter net profit.

Aldar said after the markets closed on Monday that its first quarter profit fell by 35 per cent to Dh886.million on lower sales revenue. Gross revenue during the period totalled Dh528.6 million, compared to Dh2.2 billion a 
year ago.

“Aldar was today’s bellwether stock. There was no major positive surprise to justify aggressive buying in the company, and in the sector as a whole,” said Ali Khan, managing director of Arqaam Capital Limited.

The Dubai Financial Market benchmark index shed 1.39 per cent at 1,546.74. The Abu Dhabi Securities Exchange main index dropped by 28 points or 1.14 per cent at 2,444.60.

Arabtec Holding, the UAE’s biggest construction company, gave up 2.59 per cent at Dh1.88. Emaar Properties, the Middle East region’s largest property developer, lost by 1.3 per cent to Dh2.27. Deyaar Development, which on Sunday reported a 73 per cent drop in its first-quarter net profit, declined by 3.27 per cent to Dh0.59. Union Properties edged down by 2.35 per cent to Dh0.83. “We may see the markets trading sideways for an extended period of time with this negative sentiment, or until we see confirmation of where the economy is going,” said Hesham Bakry, institutional sales manager at Al Futtaim HC Securities.

Adding to investors’ nervousness about the property sector is a report by Colliers International that Dubai residential prices have plunged by 41 per cent in the first quarter from the fourth quarter of 2008, and by 34 per cent during the same period last year.

In Abu Dhabi, Aldar’s poor first quarter results also spawned a sell-off in Sorouh Real Estate, dropping by 5.22 per cent to Dh2.36. RAK Properties retreated by 3.45 per cent to Dh0.50.

rocel@khaleejtimes.com