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UAE indices retreat on profit taking

The DFM index had gained 8.6 per cent and 3.7 per cent, respectively on these two days.

The market reported modest losses yesterday as NBAD General Index slipped 1.05 per cent to 15,758 points and DFM index fell 1.28 per cent to 898.6 points,

“Institutional investors, mainly funds opted to take profits rather than wait for further gains. This prompted some amount of selling by day traders,” said a DFM broker.

Most of the Dubai listed services sector shares came under selling pressure as these stocks had reported big gains during the last two consecutive days. As the total market turnover was down by 68 per cent at Dh2 billion, Dubai financial market traded 110 million shares worth Dh1.58 billion.

In the services sector, Emaar was down 2.2 per cent to close at Dh19.80. The counter reported a modest turnover of Dh990 million against Dh3.6 billon on Saturday. While Amlak and Arabtec were down by more than 4.4 per cent each, Shuaa and Tabreed were down 5.8 per cent and 3.4 per cent, respectively.

Analysts said attractive valuations and easing of liquidity are likely to lift the indices further, however, some of them said the market will remain highly volatile as investors are likely to take profits in frequent intervals.

Among the banking sector shares Dubai Islamic Bank was down 2.1 per cent as Emirates Bank gained 3.8 per cent. On Abu Dhabi bourse banking sector shares closed reported mixed investor response. UNB and FGB shares were down by more than one per cent each as Abu Dhabi Islamic Bank gained 5.5 per cent. In the services sector DANA Gas and A'bar slipped 2.7 per cent and 5.3 per cent respectively as Etisalat closed 2.6 per cent down at Dh25.85.