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Equities mixed; DFM falls, ADX rise

Market bellwether Emaar Properties fell 2.3 per cent, weighing on the benchmark index, which declined 1,4.76 points, or 0.98 per cent to 1,487.93 points.

“Today was mainly a weak day, and we saw selling pressure on most stocks despite the turnaround in the US and Europe on Tuesday,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.

“There is a lack of interest from institutional investors in putting in new positions. This is expected due to the lack of liquidity in the market and lack of news as regards issues with Dubai debt.”

A scarcity of liquidity also led to muted trading on the Abu Dhabi bourse but the index managed to end higher, helped by banking stocks. The benchmark index advanced 8.48 points, or 0.34 per cent, to 2,519.17 points.

“Stocks still trade below the important resistance levels and can remain bearish until any clear reversals are seen,” said Shiv Prakash, equity analyst at MAC Capital Advisors.

“There is no fresh flow of funds as yet in the markets; lower supports are seen at 2,430 points.”

National Bank of Abu Dhabi rose one per cent and First Gulf Bank climbed 1.7 per cent.

Mohamad Hawa, a senior analyst at Credit Suisse said he preferred Abu Dhabi-based banks NBAD and FGB as they had low exposure to Dubai debt and high capital reserves. However, banking stocks in the UAE are likely to come under selling pressure as earnings seasons nears. Moody’s said in a recent report it was keeping a negative outlook on UAE banks because of asset quality concerns. —