23/08/2016 05:24 AST
The Dubai index fell on Monday, extending losses for another session as investors resorted to profit-taking even as crude oil fell from an eight-week high.
The Dubai Financial Market General Index (DFMGI) closed 0.69 per cent lower at 3,535.29 after moving in the range of 3,525.17-3,561.16.
“People were taking money off the table more to a risk-averse mode, although it may be [a] temporary move. Still there is a lack of liquidity in the market [and] it feels that we are [in for] a very long summer,” Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group, said.
In stock-specific action, Emaar Properties closed 0.25 per cent lower at Dh7.25, while Arabtec was down 1.32 per cent to Dh1.50. Gulf Finance House fell 0.22 per cent lower to Dh0.895 while Dubai Islamic Bank and Dubai Parks and Resorts capped the session at Dh5.52, down 0.72 per cent, and Dh1.64, down 1.8 per cent, respectively.
Out of a total of 33 stocks traded on the exchange, the shares of 21 companies fell, while those of six others rose. The rest remained steady.
In Abu Dhabi, the general index closed 0.19 per cent lower at 4,510.55. Eshraq Properties closed more than 4 per cent higher at Dh0.78 but Dana Gas retreated more than 1 per cent to close at Dh0.55. Aldar Properties shed more than one per cent to end at Dh2.81.
Out of a total of 27 stocks traded on the exchange, the shares of eight companies advanced while those of 14 retreated.
According to Khokhar, traders are expected to turn their gaze to the Opec meeting and the speech by US Federal Reserve Chair Janet Yellen — some of the few catalysts at the moment.
“We expect investors to be lacklustre and reserved in terms of taking positions,” he said. “Markets may normalise only next month, and we would get a better sense of investors sentiment [then].”
So far, the Dubai index has been the top performer in the region this year, having registered gains of 12.2 per cent.
The rally in the gauge can be attributed to a recovery in oil prices, which gained more than 20 per cent from their recent low of below $40 (Dh146.92) per barrel.
In other markets, Saudi Arabia’s Tadawul All Share Index led regional losses after closing 1.65 per cent lower at 6,109.77. The Qatar Exchange index closed 0.74 per cent lower at 11,213.85 while the Muscat Securities MSM 30 index closed 0.43 per cent lower at 5,873.80.
Drake and Scull shares drop 3%
Drake and Scull (DSI) fell 3 per cent on Monday to extend a two-week losing streak. The share has been down ever since the company swung to a second-quarter net loss. The company reported a net loss of Dh207.6 million during the period, compared to a profit of Dh10.2 million in the comparative period a year ago. The share was one of the most-active stock in trade, contributing to 8 per cent of total volumes. The stock closed 3 per cent lower at Dh0.485.
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