DFM ends 4-day rally on bets gains overdone

Dubai’s benchmark index, the world’s best performing gauge this year, retreated the most in two weeks as investors sought to take advantage of a four-day rally to pocket gains. Qatari shares declined.

The DFM General Index fell 0.6 per cent, the steepest drop since December 16, to 3,287.57 points at the close in Dubai, trimming its gain this year to 103 per cent. The gauge is beating 93 tracked globally by Bloomberg. The measure’s 14-day relative strength index stayed above 70, the level that typically indicates a drop. Shuaa Capital lost the most in more than two weeks and Emirates NBD fell. Qatar’s QE Index declined 0.3 per cent.

“It’s year-end and everyone is locking in profits,” said Mariam Fadel, a regional equity trader at EFG Hermes Brokerage in Dubai.

Abu Dhabi’s ADX General Index gained 0.6 per cent. Egypt’s EGX 30 retreated 0.6 per cent.

Saudi Arabia’s Tadawul All Share Index gained 0.2 per cent. Samba Financial Group lost 3.9 per cent, the most in four months. Kuwait’s gauge declined 0.5 per cent, while Muscat’s index rose 0.3 per cent and Bahrain’s increased 0.4 per cent.