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DFM Fails to Sustain 
Rally; ADX Slightly Up

DUBAI — UAE bourses showed mixed trends on Monday as Dubai Financial Market failed to sustain the rally and fell into negative columns with lower trading volumes while Abu Dhabi Securities Market moved slightly up.

Emaar Properties was the major loser as Dubai Financial Market’s General Index, DFMGI, declined 2.54 per cent to 1,832.94 points, with retail investors booked gains following a two-day surge.

Emaar Properties, the UAE’s biggest property developer, dropped 3.88 per cent at Dh3.96, trimming its gains to 32 per cent this month. Dubai Financial Market, the bourse operator, declined 4.57 per cent at Dh1.88.

Out of 30 stocks traded yesterday, only five posted gains, while three remain unchanged and 22 declined as volume declined to 450.8 million shares from 603.2 million a day before.

“The drop was expected. Markets do not have the momentum to continue rally for more than two weeks. It is a retail-driven rally and investors are booking some profits now,” said Chamel Fahmy, regional senior sales trader at Beltone Financial.

Union Properties fell 3.77 per cent at 51 fils after a news report said more than 30 investors have sued the developer for breach of contract.

A Financial Times report saying Dubai Holding is considering restructuring up to $20 billion in debt, also weighed on the market.

“We don’t know the exact details yet but reports of Dubai Holding having to restructure debt is certainly weighing on the market,” Fahmy said.

In banking sector, Emirates NBD declined 3.79 per cent at Dh3.05 and Dubai Islamic Bank dropped 2.21 per cent at Dh2.66. On positive sides, Gulf Investment and Gulf Finance House rose 10.92 per cent and 4.3 per cent, respectively. Arabtec Holding, the UAE’s largest construction firm by market value, fell 1.54 per cent at Dh2.55 despite securing three projects worth Dh1.359 billion in Abu Dhabi and Doha.

ADX Rises

Abu Dhabi Securities Market’s General Index, or ADXGI, rose 0.08 per cent to 2,931.67 points, supported mainly by banking stocks.

Abu Dhabi Commercial Bank rose 1.9 per cent at Dh2.14, First Gulf Bank gained 1.7 per cent at Dh17.9 and National Bank of Abu Dhabi advanced at Dh11.80.

Emirates Driving Company and RAK Properties dropped 10 per cent and 5.36 per cent, respectively. Out of 30 stocks traded on ADX, only seven posted gains, four remain unchanged and 19 declined as 90.98 million shares traded yesterday.

In terms of value, Aldar Propertiesremained a most active share on ADX as its Dh66.09 million shares changed hands. In terms of volume, Sorouh Real Estate remained on top as its 19.21 million shares were traded on the exchange. 
— muzaffarrizvi@khaleejtimes.com