Dubai stocks plummeted sharply yesterday on account of profit booking on Dubai Islamic Bank (DIB), which seems to have taken over from Emaar Properties the market's leadership during the past week. The benchmark index fell by 2.24 per cent to 3,785.48, while DIB plunged by 7.16 per cent to Dh7.

"Profit booking in the leading shares took the market down, especially DIB, Tamweel and IAIC," Mohammad Beheiri, dealings and portfolio manager at Amanah Financial Services.

Emaar maintained its price above the Dh11 level, falling by 1.75 per cent to Dh11.20.

"DIB seems to have captured the leadership status this week, as the market followed its downward trend, while it represents a heavyweight composite of the index," he added.

All the sectors ended the session in the red, with the exception of the materials sector, on account of the strong 4.90 per cent gains by the National Cement Company, one of two only gainers.

Out of the 21 traded shares, 17 ended up on negative grounds.

"Last week foreigners accounted for 40 per cent of the value of traded shares lifting the market index up, a positive trend that coincided with the release of the British soldiers that were captured by Iran," said Beheiri.

In Abu Dhabi, the decline was less steep, as the index lost 0.26 per cent to close at 3,028.35. Aldar Properties lost 0.84 per cent to close at Dh4.75, while Dana Gas fell by 1.39 per cent to Dh1.42.

etisalat's retreat by 1.24 per cent to Dh15.95 was offset by the gains of the National Bank of Abu Dhabi which advanced by 1.86 per cent to Dh19.20.