Stocks snap winning streak

The benchmark plunged 4.5 per cent to 1,980 points, its biggest single-session reverse since January 21. It gained 21 per cent in the nine sessions to Sunday's close.

"The markets have run ahead of themselves and so it's expected to see some bouts of profit-taking over the summer," said Hashem Montasser, EFG-Hermes managing director and head of regional asset management.

Emaar Properties fell 5.5 per cent, while Dubai Financial Market, Union Properties and Arabtec all dropped more than 7 per cent.

"There are still some concerns about Dubai's real estate and property sectors," says Montasser.

"But some would argue this had already been priced in, with the market trading at distressed levels for some time and so it was normal for it to play catch up over the past few weeks."

Abu Dhabi's index also finished lower for the second session in three, as banks and property stocks tumbled, dragged lower by weakening global sentiment.

Abu Dhabi Commercial Bank fell for a second day, plunging 6.3 per cent. It surged 38 per cent in the seven sessions to Sunday.

Union National Bank lost 5 per cent and Aldar Properties dropped 4.4 per cent.

These losses helped drag the benchmark down 1 per cent to 2,826 points. Emirates Telecommunications Corp limited the decline, rising 1.9 per cent.

"Markets won't move in a straight line and so there's bound to be some bouts of profit-taking and this is one of them," said Hashem Montasser, EFG-Hermes managing director and head of regional asset management.

"U.S. stock futures are down and regional markets are still taking their cue from global stocks, while oil has come off.

"But the environment is still positive."

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