UAE property stocks reverse gains

The DFM index drops 0.3 per cent while the ADX index closes marginally down, losing 0.05 per cent.

The Emaar Properties chairman Mohamed Alabbar. Satish Kumar / The National

Emaar Properties slipped 0.8 per cent to Dh3.62 after rising 1.4 per cent earlier in the week after Mohamed Alabbar, its chairman, said the property sector would pick up.

Elsewhere in property, Arabtec Holding fell 0.5 per cent to Dh1.82.

Hassan al Salah, the head of institutional sales at AlRamz Securities, said: "Ever since the fall [of the market last year], everyone understands how oversupplied the market is."

But Mr al Salah said some positive momentum came from traders going for "conviction buys", or stocks that are expected to outperform the market in the future.

He cited Air Arabia as an example. The stock has a yield of 12 per cent on its dividend, although it closed down 0.1 per cent to 78 fils.

"Some names are still getting picked up but not going into force because the market can't handle the volume right now," Mr al Salah said.

Property stocks fared better in Abu Dhabi as Aldar Properties rose 1.4 per cent to Dh2.21 and Sorouh Real Estate gained 1.2 per cent to Dh1.65. RAK Properties, which rose 2.2 per cent in intraday trading, closed flat at 45 fils.

Negative sentiment prevailed elsewhere in the region: Qatar slipped 0.2 per cent to 8,142.12; Oman fell 0.2 per cent to 6,592; Bahrain lost 0.06 per cent to 1,437.94; Kuwait was down 0.3 per cent to 6,891; and the Saudi Tadawul All-Share Index fell 0.2 per cent to 6,318.5.