28/02/2017 06:03 AST
Traded volumes fell to their lowest level in eleven weeks on Monday on Dubai bourse as traders re-positioned themselves for dividend play.
Traded volumes fell to Dh293 million to its lowest level since December 18, last year. The Dubai Financial Market General index closed 0.25 per cent lower at 3,633.46.
“They [the retail traders] are on strike as they have nothing new to react, but this doesn’t mean that they’ll come back in a big way later,” said Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities (NBADS) said.
“There is always a pause at the end of the results season. There are other issues involved like for example Trump is due to address the congress,” he added.
Traded volumes have been on a high, totalling more than Dh1 billion with major contribution coming in from Gulf Finance House (GFH).
On Monday, traded volumes in the GFH fell to a little over Dh100 million. GFH finally closed 1.4 per cent higher at Dh2.90.
Dubai Islamic Bank closed steady at Dh6.24. Dubai Entertainments closed 1.75 per cent lower at Dh1.12.
Union Properties closed more than a per cent higher at Dh1.010. Out of a total of 15 stocks traded on the exchange, shares of 15 firms fell, while other 11 rose. The rest remained steady.
The Abu Dhabi Securities exchange index closed 0.6 per cent lower at 4,628.56.
Etisalat closed 1.34 per cent lower at Dh18.35, while Abu Dhabi Commercial Bank closed 2.68 per cent lower at Dh7.27. United Arab Bank closed 7.3 per cent lower at Dh1.67.
Eshraq Properties closed at Dh1.20, up 4.3 per cent, was the most-active stock in Abu Dhabi with 99 million shares.
“The recovery is holding over the support levels in Eshraq Properties, and the stock is expected to head towards the Dh1.32 target,” NBADS said in a note.
Dividend play
“All these people will come back during the dividend trades, so if they trade out what do they trade into,” Manibhandu said.
“As we go in March, the pause may last a few more days, and we may see a pick-up,” he added. March is typically a month when traders position for dividend paying stocks.
Elsewhere in the Gulf, out of a total 32 stocks, shares of 11 firms fell, while other 12 rose. Saudi Arabia’s Tadawul index closed at 6,969.30, down 1 per cent. The Parallel Market Index also closed more than 1 per cent lower. The Qatar exchange index closed almost flat at 10,938.80.
Gulfnews
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