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DFM Slides by 3.1 Per Cent


The main index of the Dubai Financial Market fell by 3.1 per cent at 2,014.09, staying slightly above the psychologically important 2000 level after dropping to an intra-day low of 1,989.93.

“The markets, especially Dubai, will rebound next week as it was able to stay at the 2000 level, it signals the strength of the market at that support level. The low volumes that we have seen indicates investors are also not willing to sell all that much, said Haissam Arabi, chief executive officer and fund manager at Gulfmena Alternative Investments.

The benchmark index of the Abu Dhabi Securities Exchange slipped for a third session, finishing 2.3 per cent lower at 2,798.39.

The UAE equities markets may take an extended breather, in line with global stocks’ correction, said Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG-Hermes.

“Investors are evaluating recent moves in relation to earnings and growth. It’s clear that we’ve priced in expectations of recovery, but only evidence of it coming through can sustain the momentum and push us higher. The temporary change in the dynamic of the market will prompt buyers to play hard to get and sit lower on the bids. Position building in the next few sessions could involve more averaging down, rather than buying full sizes for fear of 
missing the prices.”

Ali Khan, managing director of Arqaam Capital, said consolidation phase will continue, with no real positive catalysts to prevent investors from locking in recent gains.

“The correction reflects how much the markets have moved up recently. Investors would want to take money off the table ahead of the slow summer months.” Dubai’s major property and consruction companies’ combined losses were at 5.1 per cent.

Emaar Properties, the Middle East’s biggest property developer, lost 4.8 per cent at Dh3.60. Deyaar Development declined by a hefty 6.5 per cent at Dh0.87, while Union Properties lost by 6.3 per cent to Dh1.04. Arabtec Holding, the UAE’s largest construction company, shed 3.7 per cent at Dh2.90.

Also helping to bring down the Dubai index was the Dubai Financial Market PJSC which fell by 3.7 per cent to Dh1.81. Shuaa Capital, the country’s biggest investment bank, edged down by 4.9 per cent to Dh1.53 as its feud with the Dubai Banking Group over Dh1.5 billion of convertible bonds remains unresolved. The Dubai Islamic Bank which is offering up to 90 per cent financing for nationals acquiring properties, lost 3.2 per cent at Dh2.71. Weakness in both global and regional markets, has convinced investors to cash in profits in Abu Dhabi, as property stocks slipped by 5.6 per cent, while banks fell by 1.8 per cent.

RAK Properties nosedived by 9.6 per cent to Dh0.85. Top-ranked property company Aldar Properties edged down by 5.7 per cent to Dh4.18, while Sorouh Real Estate, plunged by 7.3 per cent to Dh3.06.

Some of the biggest losers among banks were the National Bank of Abu Dhabi which declined by
 4.8 per cent to Dh10.

First Gulf Bank which is largely-owned by Abu Dhabi’s ruling family, slipped by 1.8 per cent to Dh14. The Abu Dhabi Commercial Bank gave up 2.6 per cent to Dh1.85.


rocel@khaleejtimes.com