Aug. 7 (Bloomberg) -- Dubai’s benchmark stock index fell for a second day on investor speculation a rally last week prompted by earnings that exceeded expectations was overdone.
Emaar Properties PJSC, which last week surged 5.2 percent, dropped the most since July 23. Dubai Financial Market PJSC, the only publicly traded Gulf Arab stock market, declined for a second day. The DFM General Index fell 0.2 percent to 1,556.79, the lowest level since Aug. 2, at the close in the emirate. The measure rallied 2.7 percent last week. The Bloomberg GCC 200 Index gained 0.1 percent and Qatar’s QE Index rose 0.2 percent.
“The market is experiencing some slight profit-taking on selected stocks” after the rally last week, said Samer Darwiche, a Dubai-based analyst at Gulfmena Investments Ltd.
United Arab Emirates companies including Emaar, which has the heaviest weighting on Dubai’s index, posted second-quarter profit that beat estimates. The earnings helped push Dubai benchmark’s 14-day relative strength index to 70 on Aug. 5, a level that to some investors indicates a measure is poised to decrease. The index declined to 62 today.
Oil for September delivery fell as much as 0.5 percent to $91.78 a barrel on the New York Mercantile Exchange before trading at $92.65 a barrel at 5:05 p.m. in Dubai. Gulf Arab oil exporters, including Qatar and the U.A.E., supply about a fifth of the world’s oil.
The shares of Emaar, the developer of the world’s tallest skyscraper, fell 1.2 percent to 3.38 dirhams, trimming the gain for the year to 32 percent. Dubai Financial Market decreased to 98.2 fils, the lowest since July 31.
Air Arabia PJSC climbed to the highest since April 17, rising 0.8 percent to 65.1 fils, after the Middle East’s biggest discount airline reported a 31 percent increase in second-quarter profit, beating estimates.
“Company earnings are continuing to support and surprise positively like Air Arabia,” Darwiche said.
Saudi Arabia’s Tadawul All Share Index gained 0.3 percent and Abu Dhabi’s ADX General Index rose 0.2 percent. Oman’s MSM 30 Index and Bahrain’s BB All Share Index were little changed, while Kuwait’s gauge slipped 0.4 percent.
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