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Sun 12 Dec 2010 12:16 PM

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Tabreed, property stocks weigh on Dubai

Qatar's Nakilat hit a seven month closing high as Doha's bourse continued World Cup driven rise

Tabreed, property stocks weigh on Dubai
CUP RALLY: Bank and property stocks led Qatars index higher as the World Cup continued to push gains (Getty Images)

District cooling firm Tabreed dropped, weighing on Dubai's index, as investors worried about dilution in value of the stock after the firm slashed its share capital by 80 percent.

Tabreed closed 5.1 percent lower, dragging Dubai's index down by 1 percent. The firm reduced its number of outstanding shares to 243.4 million from 1.2 billion, cancelling 970 million shares.

Property stocks also declined, led by Arabtec which fell 2.9 percent and Drake & Skull which dropped 3.2 percent.

"There is partial profit taking today as property stocks went up last week after the Qatar soccer World Cup announcement," said Mohamed Khaled, relationship manager at Prime Emirates.

In Abu Dhabi, developer Aldar Properties fell 2.8 percent and Sorouh Real Estate declined 2.3 percent. The broader index added 0.2 percent.

Qatar Gas Transport Co (Nakilat) hit a seven month closing high, as Doha's bourse continued to rise on expectations of increased government spending after the Gulf state was chosen to host the football World Cup in 2022.

Nakilat climbed 6.3 percent to its highest close since May 4, lifting the index by 0.5 percent. The bourse rose for the sixth session in seven.

"Investors are expecting new projects to be announced for the World Cup arrangements," said Hani Girgis, assistant chief dealer at Dlala brokerage.

Masraf Al Rayan gained 1.1 percent.

Kuwait's index lost 0.3 percent, falling for a third day in a row.

Saudi Arabia's index slipped, with petrochemical shares leading the drop after oil prices fell on Friday.

Heavyweight Saudi Basic Industries and the petrochemical index dropped 0.7 percent each.

Volumes were also low as investors stayed on the sidelines ahead of the Saudi federal budget that its expected to be released soon.