Real estate firms hurt Dubai

Qatar bourse extends gains

DUBAI, Sept 3, (RTRS): Dubai’s stock market reversed course to end lower on Tuesday, hurt by its property shares, while blue-chip lenders helped Qatar outperform major markets in the region. In Dubai, the index fell 0.5%, with all its real estate stocks tumbling. Emaar Properties, the emirate’s largest listed developer, lost 2.3%, while its units Emaar Malls and Emaar Development were both 2.1% and 2.2% respectively.

Heavy oversupply in the property market, an important sector of Dubai’s economy, has seen residential prices slide by atleast a quarter since mid2014. On Monday, Dubai set up a real estate planning commission to regulate projects and avoid competition between semi-government and private firms, in a move designed to address the property market slump.

However, Emirates NBD gained a further 2.7%,extending gains for a second day in a row. On Monday, the lender soared 14.9%, reaching its highest level since October 2007,after the bank said that it had raised its foreign ownership limit to 20% from 5% with immediate effect.

The Qatari index added 0.3%, stretching gains for the fourth straight session, with Qatar International Islamic Bank surging 5.3% and Qatar National Bank, the Gulf’s largest lender by assets, closing 1.1% higher. The Saudi index slipped 0.6%, driven down by a 1%fall in Al Rajhi Bank, and a 2.4% drop in Riyad Bank.

The index took a breather on Monday as it has been sliding since Wednesday mainly pressured by its lenders. Investment bank EFG Hermes had said on Wednesday that the investment case for Saudi banks is no longer “compelling”against a backdrop of receding passive fund flows and the emergence of credit quality concerns among others. Egypt’s blue-chip index declined 0.7%, snapping a four-day winning streak, with most of its bluechip share stumbling. Commercial International Bank was down 0.9%and Eastern Company traded 3.5% lower. Non-Arab foreigners were net buyers of stocks during the session and Egyptians and Arabs were net sellers, according to the stock exchange.

Back in the Gulf, the Abu Dhabi index lost 1% with First Abu Dhabi Bank, the United Arab Emirates’ largest lender losing 1.1% and Abu Dhabi Commercial Bank shedding 2.6%.

Saudi Arabia

The index dropped 0.6% to 7,924 points

Abu Dhabi

The index lost 1% to 5,105 points

Dubai

The index was down 0.5% at 2,876 points

Qatar

The index increased 0.3% to 10,300 points

Egypt

The index down 0.7% to 15,000 points

Bahrain

The index added 0.2% to 1,543 points

Oman

The index gained 0.4% to 4,017 points

Kuwait

The index was up 0.1% at 6,560 points