Global cues weigh on Arabian Gulf shares

Arabian Gulf shares ended mostly lower yesterday, hurt by a fall in global markets on Friday. In Dubai, shares of Emaar Properties dropped 3 per cent and Damac Properties fell 2.9 per cent, as Dubai’s property shares lost momentum after last week’s gains.

On Wednesday, Emaar Properties had seen its biggest one-day gain since June 2017 and had extended gains on Thursday, as investors were tempted after a steep fall in the stock price.

Dubai’s declining real estate market has been a drag for property shares this year with Emaar Properties down more than a third year-to-date. The Dubai index fell 1.6 per cent to 2,557 points.

In Abu Dhabi, the index fell 0.6 per cent at 4,831 points, hurt by selling in First Abu Dhabi Bank, which dropped 1 per cent and a 3.7 per cent slide in Aldar Properties.

“We have seen some sell-off over the weekend internationally and the impact of that was as usual reflected in our unstable and vulnerable markets,” said Marie Salem, director of capital markets in FFA Private Bank Dubai.

“It was normal to see such a reaction along with some profit taking following last weeks upside.”

The Saudi Arabian index was flat at 7,908 points, but telecom operator Zain Saudi Arabia surged 5.8 per cent after it announced that it was one of three companies that had agreed with the government to a change in the calculation of their annual royalty fees.

The companies said they agreed the royalty change, and on settling disputed fees to be paid for previous years up to 2017; in return, they will invest in upgrading network infrastructure over next three years.

Saudi Telecom also surged 1.3 per cent, but Etihad Etisalat, known as Mobily, eased 3 per cent.

In Egypt the index was flat at 12,994 points and the Kuwaiti index was up 0.4 at 5,407 points. In Bahrain the index was flat at 1,319 points. The Oman index was down 0.7 per cent at 4,417 points.

Dubai’s declining real estate market has been a drag for property shares this year