12/05/2010 00:00 AST
UAE bourses on Tuesday took a U-turn as investors squared off their positions in thin trade. Longer-term investors and institutions stayed away from the market as excitement over $1 trillion plan fades and new debt fears jolted global stock markets.
Dubai Financial Market’s General Index, or DFMGI, declined to a two-month low. The benchmark index fell two per cent to 1,706.58 points, its lowest finish since March 11, tracking losses in Asia and Europe.
Out of 27 stocks traded yesterday, only one company posted gains, while three remain unchanged and 23 declined as volumes dropped to 141.35 million from 246.41 million shares a day before.
“Yesterday’s rally was mainly down to international markets, because our markets need more time before they can enter a bull run,” said Musa Haddad, head of MENA equity desk at National Bank of Abu Dhabi.
“Asia is down, so we are going down today — that’s not the way we’re supposed to trade. Institutions are not very active in the market because of a lack of catalysts in Dubai and Abu Dhabi,” Haddad said.
Arabtec Holding tumbled four per cent to Dh2.40, Emaar Properties dropped 2.81 per cent to Dh3.81 and Dubai Financial Market declined 2.79 per cent to Dh1.74. This trio accounted for nearly two-thirds of all shares changed hands on the exchange.
“The UAE outlook is unclear as we wait for Dubai World’s debt issues to be completely sorted out so we can return to fundamentals,” Haddad said.
A deal between creditors and troubled state-owned conglomerate Dubai World could be finalised within two weeks, a top official said on Sunday.
“Right now, the market is not building any bases, it is just moving up and down in a range. That’s why trading is coming from retail investors, not institutions — it’s better for them to sit on the sidelines. There’s no reason to buy and hold positions for the longer-term.”
Emirates Integrated Telecommunications Company, or du, fell 1.18 per cent to Dh2.52 despite the fact its first-quarter net profit more than quadrupled on subscribers growth and new products launch.
“We were quite surprised by the number of mobile subscribers added during the quarter and the mobile usage,” said Marise Ananian, vice-president, telecoms, at EFG-Hermes in Cairo.
“The company continues to surprise in terms of subscriber additions and is able to capture more of the market which it has been doing over the last year. We are expecting the company to continue its good performance.”
ADX down
Abu Dhabi securities Market’s General Index, or ADXGI, dropped 0.23 per cent to 2,788.48 points as volumes fell to a seven-session low. Out of 31 stocks traded yesterday on ADX, 11 posted gains, while seven remain unchanged and 13 declined as volumes dropped to 43.72 million shares.
Banking sector led the decline as all major banks fell into negative columns. Abu Dhabi Commercial Bank fell 2.15 per cent to Dh1.80, Abu Dhabi Islamic Bank declined 1.45 per cent to Dh2.71 and First Gulf Bank lowered 1.36 per cent to Dh18.10.
Union Cement Company plunged 6.21 per cent to Dh1.35.
In terms of value, Aldar Properties remained a most active share on ADX as its Dh25.73 million shares changed hands on ADX. In terms of volume, Dana Gas remained on top as its 21.76 million shares were traded on the exchange.
Khaleej Times
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