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Equities Down in Thin Trading Session as Volumes Drop to Record Low

DUBAI — UAE bourses opened the week on sluggish note as Dubai gave up early gains in thin trade while Etisalat shares weighed on Abu Dhabi market on Sunday.

Dubai Financial Market’s General Index declined 0.13 per cent to 1,623.93 points as volumes declined to record low of 76.25 million shares, the lowest since November 30.

The market opened the week on positive note, but bearish sentiments prevailed later in the day and it fell into negative territory in thin trade, reflecting the mood of investors seeking clarity on the Dubai World’s multi-billion debt restructuring.

Out of 29 stocks traded, 12 posted gains while five remain unchanged and 12 declined as shares worth Dh99.45 million traded yesterday.

“The low volumes illustrate that the market is in wait-and-see mode as news on the Dubai World debt restructuring is expected some time in March,” Matthew Wakeman, EFG-Hermes Managing Director for cash and equity-linked trading, told Khaleej Times.

“Its likely that rumours will start to circulate good and bad ahead of any official release, but what is clear is that the market had priced in a gloomy scenario and so any positive surprise will see a sharp move higher.”

Volumes remained low in both Abu Dhabi and Dubai markets as investors await more details on Dubai’s debt restructuring plan. Analysts said that markets are awaiting more clarity on Dubai’s debt issues and trading volumes will remain low in days to come.

Although, most of the major listed companies closed the day in positive columns, but they failed to sustain the positive sentiments in the final session.

Emaar Properties, the UAE’s biggest property developer, moved slightly higher and finished the day at Dh3.04. Union Properties declined two per cent to Dh0.49 and Arabtec Holding dropped 0.93 per cent to Dh2.14.

Emirates NBD rose 0.38 per cent to Dh2.61 while Gulf Finance House declined 0.98 per cent to Dh1.01.

DFM closed up 0.66 per cent at Dh1.52.

Abu Dhabi Securities General Index also followed the Dubai market and closed in negative columns. Abu Dhabi Securities General Index fell 0.43 per cent, or 11.95 points, to 2,754.68 points as Etisalat shares declined in profit taking.

Etisalat dropped 1.2 per cent to Dh11.90 as investors book profits on the stock.

“The stock went up last week on news of their expansion plans. Today, I think people are just booking profits,” said Shawkat Raslan, head of sales at Prime Emirates.

Waha Capital rose 2.2 per cent to Dh0.91 after saying it may opt for a convertible bond issue. Aabar Investment and Aldar Properties moved slightly higher and closed the day at Dh2.27 and Dh3.80, respectively.

muzaffarrizvi@khaleejtimes.com