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Equities turn positive; property shares lift DFM

DUBAI — UAE bourses on Wednesday turned positive as property shares recovered some lost ground in thin trade on Dubai Financial Market and Abu Dhabi Securities Exchange.

Investors bought shares in selective real estate companies anticipating better corporate results in second quarter.

Dubai Financial Market’s General Index, or DFMGI, reversed the trend and managed t0 close in positive columns. The benchmark index rose 9.12 points, or 0.59 per cent, to 1,551.19 points in a volatile trade as investors made selective buying in property shares.

Out of 27 stocks traded yesterday, 13 posted gains while two remain unchanged and 12 declined as investors exchanged 159.94 million shares worth Dh178.80 million shares on the exchange.

Property developer Deyaar led the recovery in real estate sector and surged 13.68 per cent to 0.35 fils on heavy volumes. Union Properties and Emaar soared 5.43 per cent and 1.22 per cent, respectively. Arabtec declined 0.52 per cent to Dh1.91.

“This is due to local buying where small stocks see huge volumes, it’s short-term trading,” said Musa Haddad, Head of MENA Equity Desk at National Bank of Abu Dhabi.

In banking sector, major stocks failed to attract the investors as Emirates NBD and Dubai Islamic Bank fell into negative columns by posting a decline of 0.38 per cent and 0.49 per cent, respectively.

ADX flat

In Abu Dhabi, Dana Gas dominates trading and ended 2.9 per cent higher, after announcing its board had approved a 10-per cent share buyback.

The company remained on top in terms of value and volume, as its 48.85 million shares worth Dh34.47 million were traded on the exchange.

Abu Dhabi Financial Market’s General Index, or ADXGI, ended flat by edging up 0.33 point, or just 0.01 per cent. Abu Dhabi Shipbuilding surged 5.45 per cent to Dh3.16 while Aabar Investments rose 4.76 per cent 
to Dh1.70.

“There aren’t really any drivers, the second quarter may be better, we may see some good results from companies like Air Arabia, Emaar Properties and First Gulf Bank,” said Julian Bruce, EFG-Hermes Director of Institutional Equity Sales.

“Overall many are still cautious on the banks, Dubai World still hasn’t been booked as non-performing loans so there is a bit of overhang 
there,” he added.

On the negative side, banking shares fell as investors didn’t show any interest to hold their investment. Invest Bank fell 2.70 per cent to Dh1.8 while Sharjah Islamic Bank and National Bank of Umm Al Qaiwain dropped 2.38 per cent and 1.96 per cent, respectively. 
 — muzaffarrizvi@khaleejtimes.com