Dubai makes largest drop in 3 weeks as Emaar weighs

Most Gulf markets retreat; Oman gains 0.5 pct

DUBAI, Feb 26, (RTRS): Dubai’s bourse made its largest one-day loss in three weeks on Tuesday as its heaviest stock Emaar Properties dropped on lower-than-expected dividend distribution, while most other regional markets also retreated.

Shares in Emaar fell 2.8 percent to 5.14 dirhams, down from the previous session’s 51-month high. The developer proposed a 2012 cash dividend of 10 fils, similar to that of 2011 and 2010. The stock had rallied in recent weeks partly on hopes of a higher dividend payout.

“From a technical point of view we have all the negative divergences we need to doubt the share will move on from here,” said Nabil Al Rantisi, managing director at Menacorp in Abu Dhabi. “We have no reversal patterns yet but 5.35 is a major target. From a fundamental view we are more or less around the fair value of Emaar.”

Emaar’s performance triggered selling in other UAE stocks as well. National Central Cooling (Tabreed) lost 3.1 percent, builder Arabtec shed 2.3 percent and Dubai Financial Market cut 1.6 percent.

The emirate’s index slipped 1 percent in its largest daily loss since Feb 3.

Heavyweights led declines on Abu Dhabi’s bourse, which also lost 1 percent, easing away from Monday’s 39month closing high.

First Gulf Bank and Abu Dhabi Commercial Bank fell 1.5 and 2.5 percent respectively. Telecom operator Etisalat dipped 1 percent.

In Saudi Arabia, petrochemical stocks led declines on the bourse as worries over demand growth hit oil prices after inconclusive election results in Italy. Investors fear a resurgence of the euro zone debt crisis.

Saudi petrochemical stocks tend to track oil prices, with crude impacting their bottom line.

Shares in Saudi Basic Industries Corp (SABIC), the world’s largest chemicals firm, dropped 1.4 percent. Yanbu National Petrochemical shed 1.5 percent and Saudi Kayan Petrochemical lost 0.9 percent.

Most other sectors also declined. The banking shares index slipped 0.7 percent.

The kingdom’s index dropped 0.7 percent to a three-week low.

In Qatar, the market recorded losses for a fourth consecutive session, losing 0.9 percent, as investors reacted to dividend news and payouts.

Qatar Electricity and Water slumped 6.1 percent as the stock traded ex-dividend. Gulf International Services tumbled 8.7 percent. The company reported a 64-percent rise in 2012 profit and a dividend of 1.5 riyals per share.

“The results were very good but investors don’t like the dividends - they all want more,” said a Dohabased broker who asked not to be identified.

Doha Bank lost 4.2 percent, extending declines for a third day after going ex-dividend.

Dubai

The index fell 1 percent to 1,925 points.

Abu Dhabi

The index dropped 1 percent to

3,005 points.

Saudi Arabia

The index declined 0.8 percent to 6,988 points.

Qatar

The index declined 0.9 percent to 8,572 points.

Egypt

The index eased 0.03 percent to 5,546 points.

Oman

The index gained 0.5 percent to 5,960 points.

Bahrain

The index lost 0.5 percent at 1,096 points.