Dubai bourse seen steady after Monday drop

Traders confident previous day's pull-back will not be beginning of more sustained correction

Dubai's bourse is seen steady on Tuesday, with traders confident the previous day's pull-back will not be the beginning of a more sustained correction following a prolonged market rally.

The emirate's index fell 0.7 percent to 4,318 points on Monday, trimming to 2014 gains to 28.2 percent.

"We should expect to see more volatility in the markets, we should expect the markets to trade sideways," says Sebastien Henin, portfolio manager at The National Investor.

"(But) I don't see any catalysts that could trigger massive profit-taking in the short term. I don't think the (growth) dynamic is over in Dubai."

NBAD Securities described Monday's profit-taking as "mild" and wrote in a note: "Overall the market is bullish and a close over 4,350 will ignite the next bullish move to 4,500."

Abu Dhabi National Energy Co (TAQA) may face selling pressure after it posted a net loss of 2.52 billion dirhams ($687 million) for 2013 because of a non-cash impairment related to the value of its oil and gas holdings in North America.

Dubai's Air Arabia and Bahrain's Ahli United Bank will go ex-dividend on Tuesday and Wednesday respectively.

Globally, Asian shares were in a defensive mode on Tuesday after Wall Street fell overnight.

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