Abu Dhabi declines third time in four sessions

STOCK WATCH: Qatar shares retreated on profit-taking as traders cashed in Monday's surge. (Getty Images)

Abu Dhabi shares declined for the third time in four sessions as retail investors cashed in gains on market leader Emirates Telecommunications Corp (Etisalat).

The benchmark ADI fell 1.5 percent to 2,354 points, its lowest finish for seven sessions, with losers outnumbering gainers by more than two to one.

Etisalat ended down two-percent, while Arkan Building Materials dropped 9.94 percent to take its losses to more than 36-percent this month. On Feb. 25, the regulator banned four investors from buying UAE stocks for a year for violating trading rules in relation to Arkan's stock.

Dubai shares also struggle as turnover hits a nine-session high of 571 million dirhams ($155.5 million), according to Reuters data. The bourse fell for the eighth time in 10 sessions, with Emaar Properties dipped below two dirhams after falling 3.88 percent.

The index DFM eased 0.49 percent to 1,518 points.

Kuwait's main index closed lower on banking shares. The measure KWSE slipped 0.15 percent to 5,523 points, its third lower close in four trading days.

National Bank of Kuwait and Kuwait Finance House dropped 1.92 and 1.64 percent respectively.

Qatar shares retreated on profit-taking as traders cashed in Monday's surge.

The Qatar benchmark fell 1.44 percent to 4,715 points, clawing back some of Monday's 8.9-percent rise. Stocks leapt on Monday after the Qatar government said it would buy listed shares within the investment portfolios of investment banks in a move to support its financial sector.

Doha Bank, which gained 9.21 percent on Monday, dropped 2.04 percent. Qatar Real Estate plunged 7.19 percent following Monday's ex-dividend date, said Osama Rayyan, chief dealer at Dlala Brokerage and Investment Holding.

Barwa Real Estate also shed 5.56 percent as foreign investors offloaded the stock.

"Investors are taking profits after yesterday's surge," Rayyan said. "Most of Monday's activity was from individual traders and so it was expected to see them cashing in gains."

Rayyan said the Qatar index could move in a two-percent range up or down for the rest of March unless major surprises struck the local or international markets.

Shares of Oman Telecommunications Co (Omantel) and Bank Muscat weighed on Muscat's index as investors sold blue chips in favour of smaller stocks.

Oman's index fell 1.05 percent to 4,744 points.

Market leader Omantel dropped three percent, while Bank Muscat and National Bank of Oman lost 4.5 percent and 3.6 percent respectively.

"The market has been pulling in two directions for some time, with the heavyweights such as Omantel and Bank Muscat in retreat while the smaller stocks have been on the rise," said Tariq Abdelrazeq, deputy general manager at Muscat-based United Securities.

These declines saw the Muscat bourse fall for the second time in three sessions as investors sold blue chip equities to reinvest in smaller cap stocks.

"Dividends have been the main driver, with investors targeting the dividend yield," said Abdelrazeq. "The smaller stocks are also easier for speculators to move, while the large cap stocks have declined on technical selling."

Rising oil prices have boosted the medium-term confidence of Omani investors, but further profit taking is expected on Wednesday, with the markets closed for a national holiday the following day. (Reuters)

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