UAE stocks slip for second day on profit-taking

UAE stocks fell on Thursday for a second day in a row on profit-taking, shrugging off a global equities rally and oil price increases.

Markets from Germany to China rose even as the yuan fell for a third day in a row. China devalued its currency on Tuesday, pushing Asian stock markets into the red amid investor fears of a currency war and impact of the currency devaluation on the global economy.

Equities reversed some of Wednesday’s losses, with Germany’s DAX rising 1.97 per cent, while the FTSE 100 gained 0.78 per cent in afternoon trading. People’s Bank of China assuaged investor fears over the yuan’s freefall and continued depreciation.

Emerging markets edged up after a two-day slide, with China’s Shanghai Composite Index closing up 1.76 per cent and Japan’s Nikkei 225 gaining 0.99 per cent.

In the UAE, the Dubai Financial Market General Index slipped 0.9 per cent to 3,985.4, led by real estate and construction stocks.

Mortgage lender Amlak Finance declined 1.8 per cent to Dh2.17. It reported an 87 per cent drop in second-quarter profit as financing, investments and deposits income fell and amortization costs rose.

The Dubail Mall owner Emaar Properties fell 1.8 per cent to Dh7.49, while developer Deyaar lost 1.6 per cent to Dh0.768. Bahrain-based Islamic investment bank Gulf Finance House was the most active stock by volume, dropping 2.1 per cent to Dh0.715. It reported a 38 per cent decline in second quarter net profit on Wednesday.

“People are booking some gains,” said Muhammad Shabbir, the Dubai-based head of equities and portfolios at Rasmala Investment Bank. “Amlak results were bad and may have had a bearing on the market.”

The Abu Dhabi Securities Exchange General Index slipped 0.7 per cent to 4,730.27, led by investment and financial services stocks.

The Abu Dhabi investment firm Waha Capital fell 2.4 per cent to Dh2.42 after it reported an 85 per cent drop in second quarter net profit due to a one-off gain booked in last year’s second quarter.

“Most of the results have been published and there is really not much people can play for, particularly while the macro [environment] and the externalities are negative,” said Sanyalak Manibhandu, a research manager at NBAD Securities in Abu Dhabi.

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Dania Saadi

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