Dubai shares book gains

The contractor Drake & Scull lost 1.3% to 94 fils. Pawan Singh / The National

Dubai's shares declined yesterday as investors booked profits after three straight weeks of upward movement triggered by better than expected second-quarter results.

Drake & Scull International, a major contractor, lost 1.3 per cent to 94 fils. Air Arabia, a budget airline, lost 3 per cent to 64 fils.

The Dubai Financial Market General Index slipped 0.2 per cent to 1,568.38.

Markets were due for a correction, said Fadi Al Said, the head of investments at ING Investment Management in Dubai.

"Second-quarter results were better than expected, there was a pick up on real estate and at the same time valuations were very cheap."

Abu Dhabi's benchmark rose, lifted by insurance stocks.

Methaq Takaful Insurance was the second-most actively traded stock on the Abu Dhabi Securities Exchange. Methaq's shares surged 6.9 per cent to Dh1.08.

"Methaq attracts arbitrage and speculative trading from retail investors," said Khaldoun Jaradat, a broker at Brokerage House Securities. "Until last week, the stock was a laggard, so today we are seeing more investors buy shares that are considered still decently valued."

Watania, also known as National Takaful Company, jumped 3.1 per cent to 99 fils.

The Abu Dhabi Securities Exchange General Index added 0.2 per cent to 2,540.43.

Elsewhere in the region: Kuwait's measure lost 0.3 per cent to 5,679.26; Bahrain's index was little changed, down 0.05 per cent, to 1,079.16; Oman's MSM 30 Index added 0.1 per cent to 5,473.48; and Qatar's QE Index lost 0.1 per cent to 8,404.15.

The Saudi Tadawul All-Share Index rose 0.1 per cent to 6,995.40.