Dubai: With foreigners remaining quiet, local selling drove the market on the first day of the week when UAE shares fell for the second straight session.
Dubai shares were down 1.13 per cent, their lowest close since March 30. The benchmark closed at 5,728.63. The Abu Dhabi index dropped 1.42 per cent to 4,925.45.
"Geopolitical concerns affect foreigners more than locals," said Anne Marie Browne, foreign institutional sales, Al Futtaim HC Securities.
"And the reason behind local selling is based on a couple of things: it''s the traditional quiet period that always happens during the summer and I suppose, global markets always have an impact as well. Also, the trading sessions were quiet with volumes traded being very low."
The Dubai index traded 200 million shares worth Dh675.30 million. The Abu Dhabi index traded a mere 102.93 million shares, valued at Dh563.03 million.
Dubai Financial Market closed down 2.42 per cent at Dh4.83 despite reporting a 100 per cent rise in its first half profit.
"The results were quite good, but the market was expecting better," said Browne. "It came in 10 per cent below than what was expected - so there was a bit of a selloff."
Dubai Investments dropped 3.72 per cent to Dh3.62, its the lowest close since March 30.
Ajman Bank, the highest traded company with a turnover of Dh201.39 million, fell 1.81 per cent to Dh3.26, Emaar declined 1.46 per cent to Dh10.15, and Air Arabia, closed down 2.99 per cent to Dh1.62. Emirates NBD rose 0.42 per cent to Dh12.
The Abu Dhabi index continued to move sideways, breaking through the 4,950 level, but not significantly. Healthcare, energy and real estate led the decline across sectors,
"If it breaks that significantly, and when we say significantly, we mean high volumes to have a more than one per cent decline from the target that we are talking about," Browne said.
Julphar fell 9.55 per cent to close at Dh3.22. The pharmaceutical company''s CEO Abdul Razzaq Yousuf resigned yesterday citing personal reasons.
Dana Gas and Taqa lost 2.11 per cent and 4.45 per cent respectively. Sorouh and Aldar also fell to close at Dh9.37 and Dh12 respectively.