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Mon 8 Sep 2014 12:18 PM

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Dubai may remain under pressure ahead of Emaar Malls IPO

Emaar said subscriptions for the malls unit's IPO would open on September 14

Dubai may remain under pressure ahead of Emaar Malls IPO

Dubai's bourse may remain under selling pressure on Monday as investors book profits and set aside cash for the initial public offer of shares in Emaar Properties' mall unit.

The Dubai index fell 1.7 percent on Sunday after several days of testing but failing to break chart resistance at its June peak of 5,192 points.

In a move that prompted some investors to sell stocks, Emaar said on Sunday that subscriptions for the malls unit's IPO would open on September 14. The offer would be one of the largest equity sales in the Middle East since 2008, and Emaar has said it will allocate a substantial portion of the shares to the retail investors who dominate Dubai's stock market.

Qatar's bourse may also extend a pull-back which began after it hit an all-time. intra-day high of 14,053 points on Sunday. The benchmark slid 0.7 percent in the last session.

"In Qatar, the market is stretched...and some banking names have been trading at very high valuations," said Ali Adou, portfolio manager at The National Investor in Abu Dhabi.

Dubai and Qatar are among the best performers in the region this year, up 49 and 34 percent respectively.

Outside the Middle East, Asian shares edged down on Monday after Chinese trade data pointed to a weaker-than-expected recovery.