The Dubai Stock index slipped further on Tuesday, falling to its lowest level this month, as Gulf investors booked profits and positioned themselves for the third quarter results season.

The index had risen 20 percent from the beginning of August until early September, but tumbled 11 per cent since its peak on September 7.

Shakeel Sarwar of SICO Investment Bank in Bahrain explained that the current decline of the Gulf markets is part of a profit-taking trend. Six of the seven Gulf indices closed lower.

In Dubai, Investors booked in small cap stocks. The index closed at 438.43 points with 17 stocks declining against 3 gainers.

Hotel Dubai Financial Market index continued its losses for the third conscutive day, falling 2.37 per cent to 428.03 points.

In Abu Dhabi, shares in Emirates Telecommunications Corp (Etisalat) slipped 1.01% to 19.70 dirhams, pulling the main index down 1.1%. Etisalat shares are up 15% since the beginning of August.