Arabtec's drama drags dubai shares down
Real estate shares dragged the Dubai index below 4,500 points, led by Arabtec.
The DFM index closed 2.25 down at 4,489.90 points on Sunday. It hit a high of 4,636.3 during intra trade.
Arabtec shares fell by 9.86 per cent while Emaar fell by 3.44 per cent and Deyaar by 2.52 per cent.
“There are concerns from traders on further downsize of the market. We are seeing escalated pressure due to Arabtec shares weakness for the past couple of weeks,” Marwan Shuraab, fund manager and head of trading at Vision Investments, told Gulf News.
He said the focus is now to book profits on blue chips that led the rally in the beginning of the year. That is expected after such a rally.
The DFM index has surged 2.8 per cent in the last three sessions but the index has dropped 12 per cent this month alone due to more than 40 per cent fall in Arabtec shares.
Among the gainers, Al Salam Group rose 6.67 per cent to Dh1.12, followed by Ekttitab by 3.16 per cent to Dh0.621 and Al Madina by 2.13 per cent to Dh0.528.
Arabtec fell by 9.86 per cent to Dh3.84, followed by Gulfa by 9.70 per cent to Dh2.42 and Takaful-EM by 5.66 per cent to Dh0.750.
Of the 31 companies traded, seven rose, 22 declined and two closed unchanged.
About 372.76 million shares worth Dh930.66 million were traded.
Arabtec was the active value and volume leader.
“I think it [fall in Dubai shares] is more linked to sentiment and traders are reducing risk exposures. The market looks weak and I expect further fall in Dubai index, especially if the DFM index stays below 4,500 points,” Shuraab said.
In Abu Dhabi, the ADX index closed flat at 4,803.80 points, led by investment and financial shares.
Shuraab said the only good thing about Abu Dhabi is that the index is still maintaining the trading range. Issues will arise when the index closes below 4,750 points.
Among the gainers, Arkan rose 5.82 per cent to Dh2, followed by Agthia by 3.51 per cent to Dh5.90 and Abu Dhabi National Insurance by 2.68 per cent to Dh5.75.
Emirates Driving Company fell by 10 per cent to Dh3.60, followed by Abu Dhabi Ship Building by 9.72 per cent to Dh2.60 and Asmak by 9.33 per cent to Dh5.44.
Of the 35 companies traded, nine rose, 19 declined and seven closed unchanged.
About 109.96 million shares worth Dh232.33 million were traded.
Eshraq was the active value and volume leader.
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