Dubai's main stock index posted its biggest decline in almost a month on Sunday after disappointing earnings from two of its most valuable companies, Emaar Properties and Dubai Financial Market.

The index fell 1.4 per cent to 1,507 points in its largest single-day decline since June 29. Emaar and DFM shares fell 3.6 per cent and 3.3 per cent respectively.

Emaar Properties, the Arab world's largest developer, missed analysts' forecasts with a second-quarter net profit of Dh802 million which it reported on Thursday after the market close.

DFM's quarterly profit fell 80 per cent as declining trading volumes weighed on earnings. 'The best way to describe Emaar's numbers is 'light' - they are not necessarily bad,' said Ali Khan, managing director and head of brokerage at Arqaam Capital.

'DFM was a bigger miss, but one shouldn't be entirely surprised given what has happened to volumes, which are a key driver for earnings. The risk is to the downside and I would expect DFM and Emaar to head lower in the short term,' he said.

Some analysts expect earnings from Emaar, builder of the world's tallest tower, the Burj Khalifa, to improve in the second half of this year.

'The company is heading towards a strong second half of the year with remaining units in Burj Khalifa (76 per cent of total) slated for hand over, more deliveries in Dubai Marina, recurring and growing performance of hospitality and mall divisions and a growing contribution from international operations,' said Shuaa Capital in a note to clients.

In Abu Dhabi, Waha Capital gained 1.5 per cent, despite reporting a 90-per cent decline in second-quarter net profit.

'The headline (profit) number is quite weak, but the stock has rallied on the back of its bond issue, which is significant fundraising for the company,' said Ali Khan.

 A unit of Waha Capital has announced a 10-year bond expected to raise about $1.5 billion. Other Middle East markets largely continue trading sideways, as global markets edged higher on Friday but regional corporate earnings failing to inspire investors.-Reuters