Dubai index suffers biggest drop since Jan 21

MARKET MOVE: Abu Dhabi's index moved upwards on Monday. (Getty Images)

Dubai's index suffered its largest one-day loss for more than four months, snapping a nine-session winning streak.

The benchmark plunged 4.5 percent to 1,980 points, its biggest single-session reverse since Jan. 21. It gained 21 percent in the nine sessions to Sunday's close.

"The markets have run ahead of themselves and so it's expected to see some bouts of profit-taking over the summer," said Hashem Montasser, EFG-Hermes managing director and head of regional asset management.

Emaar Properties fell 5.5 percent, while Dubai Financial Market, Union Properties and Arabtec all dropped more than 7 percent.

"There are still some concerns about Dubai's real estate and property sectors," added Montasser.

"But some would argue this had already been priced in, with the market trading trading at distressed levels for some time and so it was normal for it to play catch up over the past few weeks."

Saudi Kingdom Holding surged 7.7 percent after the firm said the value of its local and foreign holdings rose in May.

Only one other of Saudi Arabia's 20 largest stocks advanced as the index fell 1.4 percent to 5.928 points. Dar Al Arkan Real Estate Development Co was the other gainer, rising 0.8 percent.

Saudi Basic Industries Corp (SABIC) dropped 2.1 percent, Al-Rajhi Bank lost 1.4 percent and SABB shed 1.4 percent as most stocks retreated on sliding oil prices and rocky global markets.

Abu Dhabi's index finished lower for the second session in three as banks and property stocks tumbled, dragged lower by weakening global sentiment.

Abu Dhabi Commercial Bank fell for a second day, plunging 6.3 percent. It surged 38 percent in the seven sessions to Sunday.

Union National Bank lost 5 percent and Aldar Properties dropped 4.4 percent.

These losses helped drag the benchmark down 1 percent to 2,826 points. Emirates Telecommunications Corp limited the decline, rising 1.9 percent.

Oman's index climbed to a highest close of 2009 as cement and steel stocks rose.

Raysut Cement and Jazeera Steel were the biggest gainers, rising 4 and 5.9 percent respectively, while Oman Cement Co climbed 2.2 percent.

These gains helped offset losses in Oman Telecommunications (Omantel), which fell 1.3 percent, and National Bank of Oman, which dropped 3.9 percent.

The index climbed 0.7 percent to 5,747 points, its highest finish since Dec. 22 and fourth advance in five sessions. Volumes were up by about a fifth from the day before.

Qatar's index ended lower, retreating from Sunday's seven-month high as investors booked profits across the Gulf region following weaker oil prices and declines in world stocks.

The benchmark dropped 1.7 percent to 7,251 points.

Industries Qatar fell 2.4 percent and Qatar Gas Transport Co (Nakilat) lost 3.3 percent. Doha Bank fell 3.2 percent as the seven largest stocks all declined.

Bahrain's index edged higher, rising 0.02 percent to 1,616 points.

Oil fell more than $1 to about $67 a barrel, dragged lower by a stronger US dollar.

Kuwait's index ended lower for a third trading day as investors booked profits from Wednesday's 2009 closing high, mirroring regional declines.

Kuwait's measure slid 0.1 percent to 8,188 points. Kuwait Finance House dropped 1.55 percent, while the four largest banks by market capitalisation were all flat.

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READERS' COMMENTS

Quick Cash
Posted by Copper_U on Monday 8 June 2009 at 12:15 UAE time


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