In flux: What's up with Dubai's stock market?!
Dubai stocks edged lower yesterday after a four-day rally as investors booked profits in what has been a bull run for the market this year even as the turmoil in Ukraine put investors elsewhere on the guard. Abu Dhabi’s benchmark stock index slipped marginally.
The DFM General Index declined 0.86 per cent to end at 4,184.37. The total volume traded dropped to 537.58 million shares from the previous session’s 603.64 million. The turnover was slightly higher at Dh1.11 billion from Thursday’s Dh1.10 billion. Of the 32 stocks traded, 23 retreated, five advanced and four remained flat.
In the capital, the ADX Securities Index has been struggling to break the 5,000-mark over the past few days, and was down 0.29 per cent to 4,944.16. Real estate, financial and investment services, consumer staples and energy led the declines. Industrial stocks were among the gainers. Of the 32 stocks traded, 17 decreased, 13 increased and two remained unchanged.
“The market witnessed some profit takings but nothing alarming,” said Sebastien Henin, head of asset management at The National Investor, an investment bank based out of Abu Dhabi. “The deterioration of the situation in Ukraine could put some pressure in the market tomorrow; the Asian opening might be interesting to follow.”
After today’s declines, DFM is up 24 per cent and Abu Dhabi 15 per cent year to date.
In Dubai, among the most active stocks in terms of value traded, Emaar Properties lost 1.32 per cent to go below Dh9 to close at Dh8.98. Other active stocks to lose included Union Properties, Deyaar Development, Dubai Investments and Gulf Finance House, which shed 0.96 per cent, 1.50 per cent, 1.40 per cent and 3.11 per cent respectively. Arabian Scandinavian Insurance (Ascana) and Gulf Navigation were among the biggest losers, dropping 9.72 per cent and 3.97 per cent. Ascana was last week’s biggest gainer, which was up 23.50 per cent.
In Abu Dhabi, Abu Dhabi national Energy (Taqa) declined 4.73 per cent to Dh1.41 after the company announced on Saturday that it led a consortium of investors to acquire two hydroelectric plants in India valued for $2 billion.
Real estate stocks Aldar Properties and Ras Al Khaimah Properties declined 1.81 per cent and 1.64 per cent and Dana Gas edged up 1.15 per cent.
By Gaurav Ghose
- You don't need to be Muslim to practice? Why Goldman Sachs' sukuk sales worked so swell this around
- Erdogan's ready to smear the banks: is Turkey about to face a financial crisis worse than that of 2001?
- An economic slowdown? The pros and cons of Israel's weakening shekel
- A spectacle of $8 trillion and more: what's the MENA Investment Conference in London all about?
- An odd dynamic? Saudi using desert to emulate Chinese model and attract Chinese investors