UAE bourses slip, with Dubai’s index halting two days of gains as investors book profits amid fresh jitters on global markets.
Dubai’s benchmark is down 0.7 percent at 1,486 points, trimming year-to-date gains to 9.8 percent. It slumped to a 15-week low last week.
Investors sell mid-cap stocks. Mortgage lender Tamweel and National Central Cooling (Tabreed) decline 2.6 and 1.6 percent respectively.
Abu Dhabi’s Aldar Properties and Sorouh Real Estate each fall 1.8 percent, snapping a four-day rally.
On Monday, sources told Reuters that Abu Dhabi had picked Goldman Sachs and three other banks to advise on a potential merger.
“UAE locals are concentrating in Aldar and Sorouh, but it’s overcooked,” says Julian Bruce, EFG-Hermes director of institutional equity sales. “Picking four banks for a merger means there’s still a long way to go and you can’t expect a swift resolution. Those two names should drift off.”
Abu Dhabi’s index eases 0.07 percent to 2,469 points.
Elsewhere, Qatar’s benchmark dips 0.2 percent to 8,481 points and Kuwait’s measure declines 0.4 percent to 6,355 points.
Riskier assets retreated broadly on Wednesday as hopes for fresh measures to tackle the euro zone debt crisis faded and caution set in ahead of a meeting of European leaders, with sentiment hurt by renewed fears Greece would leave the euro bloc.
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