DFM’s two-day rally ends on profit-taking

The Dubai market closed lower yesterday, ending a two-day rally as investors took profit on a select number of stocks, while blue chips led by Jabal Omar pushed the Saudi market into weaker territory.

Other markets were slightly higher, but volumes were generally low during the Muslim fasting month of Ramadan. The Saudi index was down 0.1 per cent, with 98 declining stocks out of 181 stocks traded during the session. Real estate developer Jabal Omar dropped 3.7 per cent. The stock jumped 6.1 per cent on Sunday, after announcing an agreement with Albilad Capital to sell 90 housing units for 1.1 billion Saudi riyals.

Al Rajhi Bank slipped 0.6 per cent to 82.8 riyals. Morgan Stanley cut the bank’s price target to 90.5 riyals from 92 riyals, keeping its overweight rating.

Petrochemical company Sabic lost 0.6 per cent, following Tuesday’s gain of close to 3 per cent, as oil prices dropped on the possibility of higher Opec output. National Commercial Bank, the largest bank in the kingdom by assets, jumped 1.6 per cent and Dar Al Arkan gained 1.8 per cent after it said on Monday it had repaid a 1.7bn riyal sukuk issue, which is due today.

Shares in Saudi Arabian appliance maker and distributor Shaker climbed 3.6 per cent to 11.1 riyals. Its trading volume was the highest since March 2017.

The company said its energy efficiency solutions subsidiary Energy Services Company signed an agreement with Signify, formerly known as Philips Lighting, to conduct efficiency studies and retrofitting across SaudiArabia, with a focus on LED lighting.

The Dubai index lost 0.9 per cent, as profit taking ended a two-day rally that had been supported by a government decision to grant residency visas of up to 10 years to investors and specialists.

Emaar Properties fell 1.5 per cent to Dh5.2. Property stocks had enjoyed a particular boost from the decision on residency visas. Emirates NBD lost 1.9 per cent, following nearly 7 per cent gains a day earlier after announcing it had agreed to buy Turkish lender DenizBank for $3.2bn.

In Abu Dhabi, the index rose 1.3 per cent on a 4.3 per cent jump by First Abu Dhabi Bank and a 2.2 per cent increase by Abu Dhabi Commercial Bank.