Emaar stocks drop for second day

Emaar Properties plunged for a second trading day as concerned investors sold after the company announced merger plans.

Emaar fell 2 percent, taking its losses to 11.8 percent in the two sessions since the merger was announced.

"Investors are worried about the dilution of their shares," says Jalad.

"Emaar is the biggest real estate company and has a long track record as a public company with audited accounts, but the other merger entities have been managed differently. It's not clear what price Emaar will pay to acquire these other firms."

The Dubai and Abu Dhabi benchmarks ended higher, reversing early losses as buyers stepped in at lower levels.

Dubai's index climbed 2.9 percent to 1,795 points, recouping some of Sunday's 6.1 percent fall, which was sparked by a planned merger between Emaar Properties and three real estate units of Dubai Holding.

Dubai Financial Market rose 3.3 percent, Dubai Islamic Bank surged 7 percent and Arabtec jumped 8.3 percent.

Abu Dhabi's index climbed 0.9 percent to 2.596 points as volumes hit a four-session high.

Dana Gas and Aldar Properties surged 7.1 and 8.6 percent respectively.

Kuwait's index ended lower for a third day as volumes fell to a fresh 16-week low, while Qatar and Bahrain also declined.

Doha's benchmark dropped 1.1 percent to 8,010 points, its lowest close since May 27.

Mobile Telecommunications Co (ZAIN) fell 3.4 percent, Agility lost 5.4 percent and Boubyan Bank shed 3.5 percent.

Qatar's index fell 2.2 percent to 6,434 points, its second straight loss. Volumes slipped to 10.1 million shares, the lowest total since April 22.

Industries Qatar and Commercial Bank of Qatar each dropped 3.3 percent.

Masraf al Rayan lost 2.3 percent after accounting for nearly half of all trading.

Bahrain's measure retreated for a sixth successive trading day, slipping 0.6 percent to 1,581 points, its lowest close since April 28.

Oman's index ended lower for a fifth day, but late buying in the blue chips helped limit losses.

Bank Muscat fell 1.8 percent and National Bank of Oman dropped 0.7 percent.

The index fell 0.6 percent to 5,601 points, taking its losses to 3.7 percent over the past week.

Galfar Engineering climbed 3.8 percent, rebounding from Sunday's month-low.

Oman Telecommunications (Omantel) rose 0.3 percent.

Saudi Arabia's index ended higher for the first session in three as banks rebounded, but an analyst said he expects the gains to be temporary.

"This is a short-term as stocks rebound from support levels, but the overall direction is down," said Youssef Kassantini, head of discretionary portfolio management at Rasmala Investment Saudi.

"The Saudi index is probably still heading towards 5,285 points, which is the 200-day weighted moving average."

Riyad Bank surged 4.6 percent, Arab Bank rose 1.8 percent and Samba Financial Group added 2.2 percent. The benchmark climbed 1.2 percent to 5,553 points, with daily volumes the second-lowest total since April 1.

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