Dubai’s bourse climbed to a new five-year high on Tuesday but profit-taking pressure was increasingly seen at the highs, while other Gulf markets were mixed.
Shares in Dubai telecommunications operator Du gained 2.4 percent, having risen as much as 5 percent earlier in the day, but trading volume in the stock was thin. Another relatively illiquid stock, Mashreq, surged 7.5 percent.
Dubai’s index advanced 1.1 percent to 2,934 percent, its highest level since November 2008 and approaching the psychologically important level of 3,000 points, which may provide some resistance.
“Valuations are close to those of emerging markets and for the time being, the re-rating of the UAE(United Arab Emirates) compared to other markets has been done,” said Ali Adou, portfolio manager at The National Investor.
“We have to look at earnings growth for the next quarter, but it’s time for a breather right now.”
Abu Dhabi’s benchmark slipped 0.4 percent to 3,856 points, trimming its 2013 gains to 46.9 percent.Kuwait’s index declined 0.4 percentand Qatar slipped 0.2 percent.
Doha’s heavyweight Industries Qatar dipped 0.9 percent after the company reported a drop in third-quarter net profit, trailing analysts’ forecast.
In Saudi Arabia, Yanbu National Petrochemical Co climbed 1.5 percent after the firm beat analysts’ forecast for third-quarter profit. Sentiment was strong across the petrochemical sector with Yanbu’s parent firm Saudi Basic Industries Corp (SABIC) up 1.5 percent.
The Saudi benchmark added 0.4 percent to 8,175 points, a fresh two-month high.
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