Going bipolar? Abu Dhabi and Dubai markets going in opposite directions
Dubai and Abu Dhabi stock markets traded in opposite directions on Sunday due to lack of activity.
Financial and investment shares dragged Dubai’s DFM index down by 0.13 per cent to close at 3467.18 points.“Fourth-quarter earnings results are likely to be the main drivers of performance in the coming weeks, with dividend pay-outs also important given the predominance of retail investors in the region. Investors will also be closely watching the announcement of federal budgets for 2014,” Sachin Mohindra, portfolio manager of Invest AD, said in a emailed statement.
He said that investor sentiment remains robust, with Dubai’s successful bid to host the Expo 2020 reinforcing the UAE economic story, even if the benefits from the events for the tourism, trade, retail and real estate sectors will be gradually felt in the coming years. The pace of the US Federal Reserve’s “tapering” in the coming year is likely to impact emerging market and frontier market sentiment, but investors in the Gulf are in a cautiously optimistic mode for now.
Bellwether Emaar bucked the trend to close 1.27 per cent higher while Arabtec closed up by 1.03 per cent. Among the gainers, Depa rose 5.97 per cent to $0.710, followed by Hits Telecom by 3.75 per cent to Dh0.912 and Emirates NBD by 2.26 per cent to Dh6.80. International Financial Advisors suffered the worst by 7.41 per cent to Dh1.25, followed by CBD by 7.17 per cent to Dh4.40 and Mashreq Bank by 2.79 per cent to Dh87.
Of the 30 companies traded, nine rose, 19 fell and two remained steady. About 686.27 million shares worth Dh1.07 billion were traded.Gulf Finance House was the most active in terms of volume and value on Dubai bourse.
In Abu Dhabi, industrial shares propelled the ADX index to close 0.56 per cent higher at 4383.68 points.The index gained for the fifth straight day.Among the gainers, Ras Al Khaimah Cement Company rose by 14.78 per cent to Dh1.32, followed by Fujairah Building Industries by 14.41 per cent to Dh1.35 and Umm Al Quwain Cement Industries by 13.93 per cent to Dh1.39.
Emirates Driving Company suffered the worst by 6.02 per cent to Dh3.90, followed by Abu Dhabi Ship Building by 4.68 per cent to Dh2.85 and Invest Bank by 3.35 per cent to Dh2.60.Of the 39 companies traded, 25 rose, eight declined and six closed unchanged. About 398.55 million shares worth Dh764.84 million were traded.Esharaq was the active value and volume leader.