Dubai shares decline as investors book profits

Monday, Dec 16, 2013

DUBAI: Dubai shares dropped close to two per cent on Monday as investors booked profits after the gains in the past two weeks led the benchmark surge to more than 95 per cent on the year. Also, concerns about Emaar Properties’ possible equity dilution is a factor in today’s sell-off. The DFM General Index closed 1.61 per cent lower to 3135.17 led by real estate and construction stocks, which were among the major gainers during the latest rally.

The day’s most active stock in terms of traded value, Emaar Properties, slipped 3.25 per cent to Dh7.14.

“The recent rally was overdone and it was simply profit taking today,” said Tariq Qaqish, head of asset management at Al Mal Capital. “News of uncertainty surrounding Emaar’s convertibility of bonds and possible dilution, although I would say it was not significant.”

The US Fed meeting in the coming two days is also playing in the minds of investors, he added.

In the capital, the ADX General Index increased 0.36 per cent to 4065.21.

By gaurav Ghose Financial Features Editor