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Abu Dhabi: UAE stocks lost Dh13.3 billion of market capitalisation this week on account of Dubai's Dh11.2 billion in losses.
The Dubai Financial Market's general index plunged 3.05 per cent to 5,578.19, and Abu Dhabi's benchmark retreated 1.18 per cent to 4,676.47.
The real estate sector was the biggest loser, drag-ged down 3.9 per cent by Emaar Properties, which fell 4.6 per cent to Dh11.35. Sorouh Real Estate plummeted 3.4 per cent to Dh10.05 in Abu Dhabi, according to the weekly report of Amanah Capital.
The energy sector followed, dropping by 3.8 per cent. Record oil prices failed to lift the listed energy companies. Abu Dhabi National Energy (Taqa) fell 3.3 per cent to Dh3.47. Aabar Petroleum and Dana Gas recorded tangible losses as well, retreating 8.3 and 3.1 per cent to Dh3.66 and Dh2.19, respectively.
The telecom sector ended the week in the red as well on account of etisalat's decline by 1.2 per cent to Dh23.80.
DFM's shares dropped 3.4 per cent to Dh5.65, losing Dh1.6 billion in market value and dragging the fin-ancial sector's sub-index down 2.5 per cent.
Banking sector
The banking sector reported the best performance, retreating only by 0.38 per cent. Sharjah Islamic Bank dropped by a massive 22.2 per cent as the 20 per cent dividend of bonus shares expired. First Gulf Bank dropped four per cent to end the week at Dh20.25.
"The listing of the convertible sokuks of Abu Dhabi Islamic Bank resulted in setting off these losses as the bank's total shares increased by 47 million to 197.1 million, lifting the market capitalisation up by Dh3.3 billion and limiting the losses of the sector," said Ahmad Abdul Rahman, head of Amanah's research and financial analysis division.
Banks
HSBC price targets
HSBC raised its price target on four Abu Dhabi-based banks and said the banks' net interest margin (NIM) could expand as they have been slow to pass on the interest rate cuts.
The brokerage raised its price target on the shares of Abu Dhabi Commercial Bank to Dh9.4 from Dh8.4, First Gulf Bank to Dh26.4 from Dh23.8, Union National Bank to Dh11.9 from Dh10.7 and National Bank of Abu Dhabi to Dh27 from Dh26.
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