Dubai’s benchmark index, the world’s best-performing gauge in 2013, dropped the most in a week led by property stocks to snap a five-day rally. Egypt’s measure fell.
The DFM General Index declined 0.6 percent to 4,589.68 in Dubai, the biggest drop since March 31. Emaar Properties PJSC, the developer with the biggest weighting on the index, retreated 1.7 percent. Union Properties PJSC dropped 3 percent. Egypt’s EGX 30 Index fell 2.3 percent to its lowest level since Feb. 11.
“There is a lot of retail flow in the market and local investors tend to have very short time horizons,” Amer Khan, a senior executive officer at Shuaa Asset Management in Dubai, said by phone. “It’s very, very natural profit taking.”
Dubai shares have been benefiting from a real estate-led economic recovery, with property prices predicted to jump as much as 40 percent in 2014, according to the emirate’s Land Department. The benchmark index has risen 36 percent so far this year, making it the top performer among more than 90 indexes tracked by Bloomberg.
Emaar, the builder of the world’s tallest tower, slipped as much as 2.3 percent, the biggest slide since March 12, to 9.87 dirhams. The builder is appointing banks for an initial public offering of its malls unit, three people with knowledge of the matter said. Emaar rose more than 29 percent this year.
Union Properties dropped as much as 4.1 percent, the biggest fall since March 12 to to 2.56 dirhams. The shares advanced 22 percent last week.
Dubai’s benchmark, which has more than doubled in the past 12 months, advanced 5.4 percent last week, capping its 11th weekly gain this year. The 14-day relative strength index fell to 75.3 today from 79 on April 3. A level above 70 indicates to some analysts that a measure is poised to drop.
The Egyptian gauge slipped for a second day to 7,524.12 as 25 of the 30 stocks that make up the benchmark retreated. Landline monopoly Telecom Egypt Co. tumbled 6.8 percent to its lowest in a month, while real estate developer Talaat Moustafa Group fell 5.1 percent, its biggest drop since July 8.
“Sentiment has changed,” Mohamed Radwan, head of equities at Pharos Holding in Cairo, said by phone. “The market has been going up for nine months and investors wanted to sell and the trigger was the al-Seesi nomination.”
The country’s index has declined more than 11 percent since March 26 when Abdel-Fattah al-Seesi stepped down as defense minister and announced he’ll run for Egypt’s presidency.
Qatar’s gauge rose for a ninth day, increasing 1 percent to 12,098.46 as a 9.9 percent jump in Qatari Investors Group helped the index cross the 12,000-level for the first since since July 2008.
Abu Dhabi’s Index rose 0.9 percent as RAK Properties PJSC advanced 15 percent. Bahrain’s gauge gained 0.5 percent and Kuwait’s added 0.1 percent. Oman’s measure fell 0.1 percent. Saudi Arabia’s Tadawul All Share Index dropped 0.3 percent.
Israel’s TA-25 Index gained 0.3 percent at 4:25 p.m. in Tel Aviv. The yield on the government’s benchmark bond due March 2023 dropped five basis points, or 0.50 of a percentage point, to 3.23 percent.