Property stocks dip as capital flows into safer bets

Dubai stocks traded lower on the first day of the week as developers and blue-chip lenders experienced a selling pressure with capital flowing into safer bets. This is after the US bond yield rose despite the Federal Reserve's dovish stance.

Dubai Financial Market ended the day lower by 0.8 per cent to trade at 2,584 points, following the lead set over the weekend by global equity markets.

Investments flew to the safety of sovereign bonds amid growing concerns about new waves of the virus that has already forced parts of the world to resort to partial lockdowns.

Lenders, Emirates NBD and Dubai Islamic Bank, drifted into a negative territory. But Emaar Properties was the one dragging the index the most, with Emaar Development shedding for a third day following no-dividend proposal from its board. Emaar Properties pulled back 2.5 per cent in what marked its biggest single-day loss this month.

Despite reports that buyers have began to return to the market in last few months, dubai property stocks have been constricted by underperforming real estate market with road to recovery remains long amid falling rents and continuing oversupply.

Most financial stocks struggled to attract investors. Dubai Securities Exchange traded lower for a third straight session, declining 0.2 per cent to close at 5,723 points.

The biggest percentage loser was Ras Al Khaimah Cement, dropping 3.3 per cent after reporting late last week that its accumulated losses reached around Dh120 million amounting to a near 24 per cent of the capital