TASI up; Dubai stocks sink 2.8%

DUBAI: Dubai's main stock index dropped 2.8 percent on Monday to its lowest level since early October, as a lack of fresh catalysts prompted investors to take profits and selling snowballed with valuations at relatively high levels.
The market has soared this year - and is still up 79 percent year-to-date - as Dubai's property market has recovered from its 2008-2010 crash and investors have speculated about the benefits if Dubai wins its bid to host the 2020 World Expo.
On Monday, 19 out of the index's 32 constituent stocks declined and only three rose, as the index suffered its biggest percentage decline since early September.
"We think this is some kind of sell-off, which was to be expected," said Marwan Shurrab, fund manager and head of trading at Vision Investments. "Some people are just trying to reduce their risk exposure."
Ali Adou, portfolio manager at The National Investor, said: "The market has rallied strongly for the past one month and I think we have to take a bit of a breather and see a bit of correction.
The Dubai index, which closed Monday at 2,823 points, broke initial chart support on the early October peak of 2,860 points.
The next underlying support is on the August peak of 2,762 points; stronger support lies around the 100-day average, now at 2,598 points.
Abu Dhabi was dragged down by Dubai but dropped only 0.9 percent, a sign that it is viewed as less richly valued.
The Tadawul All-Share Index climbed 0.3 percent to 8,271 points.
Egypt's bourse extended a profit-taking wave which started on Sunday, although at a slower pace. The index fell 0.5 percent on Monday after sliding 0.9 percent on the previous day.
The index, which closed at 6,324 points, is still up 41 percent from its late June low.
Kuwait's index declined 0.7 percent. Fouad Alhadlaq, deputy general manager at Al Dar Asset Management in Kuwait, said many local companies had put off earnings reports until this week, the last week they are permitted under regulations, leaving investors waiting on the sidelines.