After climbing early UAE markets take a dip

Markets Update: Markets pare early gains after disappointing numbers from Union National Bank and reversals at some of Dubai's bellwether companies.

Local markets got off to a rocky start in early trading, after a sharp rally at the start of trading was cut short.

The Dubai Financial Market General Index fell 0.2 per cent to 1,473.31, paring gains seen on the market open, while the Abu Dhabi Securities Exchange General Index was also left unchanged at 2,473.31.

A reversal of early gains for bellwether property stocks such as Emaar Properties and Drake & Scull International led the market downwards.

DSI fell 1.4 per cent after the announcement of an engineering contract with Qatar Petroleum worth 125m Qatari rials, having initially risen 1.1 per cent.

However, Arabtec's recent rally saw little sign of stumbling, with the shares rising 3.8 per cent in early trading to Dh2.70 each. The company's shares have risen 69.1 per cent since the start of the year.

Union National Bank's shares were the biggest mover on Abu Dhabi's market, falling 6.6 per cent to Dh2.96 each.

The bank reported profits of Dh1.5bn for 2011, a 11.1 per cent increase on a year earlier but falling short of consensus estimates.

Asian markets fell on concerns over the eurozone sovereign debt crisis, with the Nikkei 225 falling 0.1 per cent to 8,917.52 and the Hang Seng Index down 0.1 per cent at 20,680.00.

S&P 500 futures fell, pointing to a lower open on Wall Street.

Oil prices slumped, with Brent crude futures falling 43 cents to $115.67 per barrel.