Bloomberg News

Dubai Leads U.A.E. Stocks Lower on Speculation Gains Overdone

November 01, 2011

Oct. 31 (Bloomberg) -- Dubai’s benchmark stock index led United Arab Emirates shares lower amid speculation yesterday’s gain was overdone and after Abu Dhabi-based Aldar Properties PJSC announced job cuts.

Arabtec Holding Co., the country’s biggest construction company, fell the most in almost two weeks after posting earnings. Aldar, Abu Dhabi’s largest real-estate developer by market value, lost 0.9 percent. The benchmark DFM General Index dropped 0.6 percent, the most since Oct. 18, to 1,408.06 at the 2 p.m. close in Dubai. The measure surged 2.6 percent yesterday, bringing its three-day advance to 4.6 percent. It has lost 1.7 percent this month. Abu Dhabi’s benchmark ADX General Index declined for the first time in six days, losing 0.3 percent and bringing its drop for the month to 1.3 percent.

“The drop is a mix of profit-taking and the correlation to international markets,” said Tariq Qaqish, deputy head of asset management at Dubai-based Al Mal Capital. “Medium-term investors would see this correction as an entry opportunity.”

Emerging-market stocks fell, paring the benchmark index’s biggest monthly increase since May 2009, on signs of declining company earnings and after China’s premier vowed to maintain property lending curbs. The MSCI Emerging Markets Index lost as much as 1.1 percent and U.S. stock-index futures declined.

Arabtec retreated 1.4 percent, the most since Oct. 18, to 1.38 dirhams. The company said third-quarter profit amounted to 39.1 million dirhams ($10.6 million). It didn’t give a comparative figure for the year-ago period. Data on Bloomberg shows the company had a profit of 6.8 million dirhams in the third quarter of 2010.

Oil Drops

Crude for December delivery dropped as much as 1.3 percent to $92.13 a barrel in electronic trading in New York. Gulf Arab oil exporters, including the U.A.E. and Saudi Arabia, supply about a fifth of the world’s oil.

Aldar slid to 1.06 dirhams. The company will cut 105 jobs and “continue to concentrate on its core Abu Dhabi market,” it said.

Qatar’s QE Index fell 0.3 percent. Barwa Real Estate Co. retreated 3.2 percent, the most since Aug. 7, to 29.9 riyals. Third-quarter profit at Qatar’s biggest property developer declined to 80.8 million riyals ($22 million) from 277.2 million riyals in the year-earlier period, according to financial statements compiled by Bloomberg.

The Bloomberg GCC 200 Index and Saudi Arabia’s Tadawul All Share Index dropped 0.1 percent and Bahrain’s benchmark lost 0.2 percent. Oman’s MSM30 Index gained 0.3 percent and Kuwait’s gauge added 0.2 percent.

--Editors: Claudia Maedler, Chris Peterson

To contact the reporters on this story: Alaa Shahine in Dubai at asalha@bloomberg.net; Zahra Hankir in Dubai at zhankir@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus