DUBAI: UAE’s markets slipped from four-week highs on Monday as investors booked profits following steep gains in the previous two sessions, with property stocks mixed after a fresh set of quarterly results, and Qatar also dipped.
Markets in Saudi Arabia and Egypt ended little changed.
Egypt’s index eased 0.03 percent to 4,451 points while Dubai’s index slipped 0.6 percent.
Builder Arabtec shed 1.4 percent despite posting a more-than-fivefold increase in quarterly net profit and beating analyst expectations.
Emirates NBD and Aramex were the main drags, dropping 0.9 and 2.7 percent respectively.
"Today’s retracement is healthy as it probably signals a transitory period of price consolidation," said Talal Touqan, head of equity research at Al Ramz Securities.
"We could see DFM index testing 1,385 levels before resuming the corrective wave. Panic starts only if it drops below such retracements… technically speaking," he add.
Abu Dhabi’s benchmark also slipped, falling 0.3 percent. Banks weighed, with National Bank of Abu Dhabi down 0.9 percent and Abu Dhabi Commercial Bank losing 1.3 percent.
Sorouh Real Estate bucked the trend, rising 1 percent after posting a 13.4-percent rise in third-quarter net profit that missed forecasts. The stock was down 37.7 percent in 2011.
"Given where Sorouh is at the moment and the balance sheet that they have, they are in a really good position to capitalize on the growth in Abu Dhabi over the next three to four years," said Amer Khan, fund manager, Shuaa Asset Management.
Aldar Properties shed 0.9 percent after saying it will cut its workforce by 24 percent.
Elsewhere, Qatar’s index shed 0.3 percent, slipping from Sunday’s five-month high.
Barwa Real Estate was the main drag, down 3.2 percent from Sunday’s 12-week high, after its third-quarter profits fell.
Qatar Electricity and Water dipped 1.3 percent.
"Foreigners were a large part of selling in the beginning of the month, but last week, they have been coming back as buyers," says Robert Pramberger, acting head of asset management at Doha-based investment company The First Investor.
"They are coming back on a longer-term view and on valuations, now that Europe is looking better."
In Kuwait, the shares index edged higher by 0.2 percent but investor sentiment remained mixed as they wait for major companies to post quarterly results.
Low-cost carrier Jazeera Airways jumped 5.3 percent, rising for a sixth straight session to a fresh three-year high.
The airline’s chairman said last week it would post record profit for 2011.
"The bluechips that have risen recently will be tested once the results are out," said a Kuwait-based trader.
Small caps were actively traded, with Global Investment down 2 percent. Al Enma Real Estate climbed 5.6 percent and Al Salam Group gained 3.1 percent.
In Oman, the index rose 0.3 percent, helped by Renaissance Services, which gained 2.7 percent. Oman International Bank added 1.5 percent.
