Shares in Emirati supermarket chain Union Coop pared early losses to close the day nearly 9% lower at 3.56 dirhams on its Dubai Financial Market (DFM) debut.

Union Coop is the UAE's first cooperative to list its shares.

The indicative share price had been set at AED3.9 dirhams. The broader DFM market closed narrowly higher at 3170.90 points.

A Dubai-based equity analyst, who declined to be named, said the slump in share price was not surprising. “The direct listing proved to be an exit for long-time shareholders of the cooperative,” he said.

Union Coop had appointed xCube as a market maker service provider for the listing.

The listing is part of Dubai's strategy to boost the stock market's competitiveness.

Earlier, this month Dubai-based business park operator Tecom Group slumped 17% on debut.

(Reporting by Brinda Darasha; editing by Seban Scaria)