UAE, Qatar markets down; trading muted
Dubai, June 23, 2013
The UAE and Qatar markets on Sunday extended declines after a late-week sell-off as summer and lack of positive catalysts spurred investors to cash in early-year gains, but trading volumes were thin.
Dubai's index dropped 1.2 per cent to 2,333 points, trimming 2013 gains to 43.8 per cent.
"The market is slowing down - it's the end of the quarter and summer is here," says Mohab Maher, senior manager of institutional desk at Mena Corporation.
Trading volumes diminish in summer as traders and investors go on holiday to escape the summer heat; some cash out for holiday spending.
Heavyweight Emaar Properties weighed with a 2 per cent slide. Contractor Arabtec leds trading and fell 2.2 per cent.
"Arabtec will allocate the rights issue shares two weeks from now so there might be weakness in the stock until then," Maher added.
Shares in the builder have been volatile since late Feb, when the firm announced plans to raise $650 million through a rights issue, triggering a sell-off on shareholder dilution concerns. But a string of new project wins have helped the stock recover.
Abu Dhabi's measure fell 1.1 per cent to 3,595 points, extending declines since a 56-month peak last week.
Large-caps weigh with telecom operator Etisalat losing 0.9 per cent. First Gulf Bank and Abu Dhabi Commercial Bank 1.9 and 1 percent respectively.
In Qatar, the index slipped 0.5 per cent to 9,196 points to hit a three-week low. Oman's measure bucks the trend and gains 0.4 per cent to 6,415 points, while Kuwait's benchmark eased 0.06 per cent to 8,056 points.-Reuters