Dubai’s Index Falls For The First Time In 5 Days

The DFM General Index fell as investors sought to take advantage of a four-day rally to pocket gains.



Dubai’s benchmark index, the world’s best-performing stocks gauge this year, fell as investors sought to take advantage of a four-day rally to pocket gains. Qatari shares declined, while Abu Dhabi’s rose.

The DFM General Index dropped 0.5 per cent to 3,291.52 at 12:57 p.m. in Dubai, trimming its advance this year to 103 per cent. The measure is beating 93 benchmarks tracked by Bloomberg. Shuaa Capital PSC, the investment bank controlled by Dubai’s ruler, lost the most in almost two weeks and Emirates NBD PJSC, the second-largest lender in the United Arab Emirates, slid as much as 3.1 per cent. Qatar’s QE Index retreated 0.6 per cent and Abu Dhabi’s ADX General Index gained 0.3 per cent.

Shares in Dubai benefited from an economic recovery in the emirate, led by a resurgence in property prices, trade and tourism. Growth is set to average 4.6 per cent a year between 2012 and 2015, more than twice the rate of the previous four years, according to government forecasts.

“It’s year-end and everyone is locking in profits,” said Mariam Fadel, a regional equity trader at EFG Hermes Brokerage in Dubai. Trading was dominated by local investors, she said.

The 14-day relative-strength index of Dubai’s index fell to 75 from 81 on Dec. 26. A reading above 70 typically indicates prices have risen too far and are poised for a decline.

Shuaa fell two per cent, the most since Dec. 16, to Dhs0.99, while Emirates NBD retreated to as low as Dhs6.01, before trading at Dhs6.16. The shares have soared 80 per cent and 116 per cent this year, respectively.

Saudi Arabia’s Tadawul All Share Index lost 0.1 per cent and Egypt’s EGX 30 was little changed. Kuwait’s gauge declined 0.6 per cent, while Bahrain’s index gained 0.4 per cent and Muscat’s rose 0.3 per cent.