Trade value doubles over Sunday, yet remains relatively low
19/08/2014 01:02 AST
The Dubai Financial Market (DFM) index rose 0.74 per cent on Monday to reach 4,825.60 as the total trade value reached Dh476.5 million — more than twice the value on Sunday, but a significant drop from earlier trade sessions when the value would exceed Dh2 billion.
The drop in values, which started with the beginning of August, hit Abu Dhabi harder with the day ending with Dh210.3 million. Meanwhile, the index registered a 0.7 per cent increase to reach 5,051.53.
Analyst Osama Al Ashry commented on trade values saying, “Usually during August, investors are on holiday so it’s not surprising to see low values. However, given the figures today (on Monday), it’s obvious that some of the big investors — possibly funds rather than individuals — intervened by pumping liquidity into the market.”
He also attributed low trade values to some investors’ worries regarding the market’s performance.
“A lot of people think the market is high-risk because it’s on a downtrend on the long term, and because it is controlled by certain investors,” the analyst said.
Dubai powerhouses, such as Arabtec and Emaar, ended the day with higher trade values compared to Sunday as Arabtec registered a total of Dh111.3 million — up from Dh41.4 million on Sunday. The real estate developer saw share prices also rise 0.24 per cent to reach Dh4.23.
Emaar also gained 1.50 per cent, Dubai Investment Co. went up 1.42 per cent, Dubai Islamic Bank rose 1.03 per cent, and Union Properties and Gulf Finance House each inclined 0.95 per cent.
Abu Dhabi
In the capital, Abu Dhabi National Takaful Company topped the gainers’ list with an 8.7 per cent change, followed by Abu Dhabi National Company for Building Materials (Bildco) with 7.55 per cent, Sharjah Insurance Company with 7.5 per cent, and Sudan Telecommunication Company (Sudatel) with 7.22 per cent.
Al Ashry, a member of UK organisation, Society of Technical Analysts, said he expected the DFM index to reach 5,000 by the end of the year.
Discussing individual stocks, he said, “Aldar’s trade was positive today, accounting for almost 50 per cent of the total value on ADX. The stock has a target of Dh4.18, and if that resistance level is crossed, it could reach Dh4.67 to Dh5.3 in a few weeks.”
Al Ashry also had positive expectations for Dubai Islamic Bank share prices, and said they may reach Dh10 in the next two to three months.
Of the 27 stocks traded on DFM, 19 went up, five went down, and three remained unchanged. Of the 31 stocks traded on ADX, 18 advanced, eight declined, and five remained flat.
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