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DFM crosses 1,500 barrier; volume slips below 50m mark

DUBAI — UAE bourses on Sunday opened the week mixed in thin trade. Dubai Financial Market, which commenced the trading of NASDAQ Dubai securities through its trading platform, maintained its upward trend as Saudi earnings for second quarter boosted investor confidence in the regional stock markets.

Abu Dhabi Securities Market remained range-bound and ended flat.

Dubai Financial Market’s General Index, or DFMGI, hit a two-week closing high and crossed the physiological barrier of 1,500 points. Strong second-quarter results in Saudi Arabia and renewed confidence on global markets boosted local sentiment, however the volumes tumbled again to below 50 million mark as long-term investors remained cautious and avoid taking firm positions ahead of second-quarter earnings from blue-chip companies. The benchmark index rose 6.46 points, or 0.43 per cent, to 1,506.27 points, its highest finish 
since June 28.

“There has been a lift on global markets that has spilled over here,” said Zahed Chowdhury of Al Mal Capital.

“I still don’t think people are sufficiently engaged to start putting risk back into MENA markets.”

Emaar Properties led the gainers and rose 1.55 per cent to Dh3.27. Dubai Financial Market, the bourse operator, and Dubai Investments Company climbed 1.35 per cent and 0.77 per cent, respectively.

Out of 29 stocks traded on DFM yesterday, 11 posted gains while eight remain unchanged and 10 declined as investors exchanged only 49.72 million shares worth Dh77.48 million shares on the exchange.

“About 80 per cent of second-quarter numbers are still to come and people will watch for announcements from banks and real estate firms before defining positions. We don’t really have any investors left — the market has been left mostly to (short-term) traders,” Chowdhury said.

Abu Dhabi Securities Market’s General Index fell 1.24 point, or 0.05 per cent, to 2,527.10 points. Aabar Investments fell 0.7 per cent. It is down 19 per cent since saying it would seek to de-list from the Abu Dhabi bourse in a move seen as potentially negative for minority investors.

Dana Gas stood firm at 0.71 fils and Sorouh Real Estate moved slightly up to Dh1.76. National Bank of Abu Dhabi and Union Cement Company also edged up in thin trade and finish the day at Dh11.10 and Dh1.56, respectively. 
— muzaffarrizvi@khaleejtimes.com