Property companies weigh on DFM

Real estate and construction companies weighed on the Dubai market yesterday as Drake & Scull mined new multi-year lows and Saudi stocks also slipped.

DSI shares fell 10 per cent for a second day running to close at Dh0.81 per share, its lowest for at least five years.

Retail investors have been offloading the stock amid concerns about its business outlook, while investors have also been worried about the outcome of an ongoing investigation into its former management team.

Emaar Properties, the largest stock on the index, fell 1.2 per cent, while Damac Properties fell 2.2 per cent and Union Properties was down 4.3 percent.

Anxiety about the outlook for Dubai’s property market has weighed on Dubai’s stock market in recent months amid concerns about an oversupply in units. The Dubai index fell 1.1 percent to its lowest level for the year and its lowest level since January 2016.

Abu Dhabi Securities Exchange ended up 0.6 per cent.

Saudi stocks ended 0.5 percent lower as investors shed some blue-chip stocks after a strong rally linked to Riyadh’s inclusion in the MSCI emerging market benchmark.

Saudi Basic Industries Corporation was down 0.9 percent, while Samba Financial Group was down 1.5 percent. Both have been among the beneficiaries of this year’s surge in Saudi stocks.

The Saudi index is up 14.8 per cent year-to-date.

Qatar’s index slipped 0.5 per cent, with Qatar Islamic Bank and Qatar Electricity and Water Co the main weights, falling 2.3 per cent and 1.4 per cent, respectively.

Brent crude oil futures were up 0.5 per cent at $75.14 in the evening yesterday on uncertainty over Libya’s capacity to deliver on exports commitments. Brent futures had fallen 1 per cent overnight as receding investor risk appetite weighed on commodities.

Oil prices were capped after Opec and its allies on Friday agreed to increase global supplies, albeit modestly.

Tech-heavy indexes such as South Korea’s KOSPI fell 0.45 per cent and Taiwan’s weighted index fell 0.55 percent.

Taiwan Semiconductor Manufacturing was down 1.8 per cent, South Korean chipmaker SK Hynix Inc lost 1 per cent and Chinese tech giant Tencent Holdings shed 0.3 per cent.