UAE markets let off steam to end down

Markets Update: UAE bourses have dipped into the red to end the day lower, in what analysts say is inline with their expectations of some investor pullback ahead of the end of the first quarter after three months of gains.

UAE bourses have dipped into the red to end the day lower, in what analysts say is in line with their expectations of some investor pullback ahead of the end of the first quarter after three months of gains.

The Abu Dhabi Securities Exchange closed down 0.4 per cent to 2,577.40. The index is up 7.29 per cent for the year to date. TheDubai Financial Market General Index closed down 0.82 per cent to 1,655.46. Stocks on the bourse have risen 22.32 per cent since January.

Fadi al Said, senior fund manager at ING Investment in Dubai, says investors are digesting strong returns for the year so far.

"It's normal to see some consolidation as market steam cools down. The most important thing is to see if the [Dubai] index holds onto the gains at around 1,650, or between 1,650 to 1,700. The index has risen from around 1,300 at the start of the year. Now the hope is that there will be some horizontal consolidation."

Horizontal consolidation is when a market enters a period of operating with a narrow range, without any aggressive rises or falls in volumes or prices.

National Central Cooling, the Dubai-listed company known as Tabreed, was one of the biggest gainers on the index, closing up 1.94 per cent to Dh1.58 a share. Today's rise comes amid rumours the company is poised to release a hefty dividend. The stock has risen 218.55 per cent so far this year.