UAE Equities Fall in Choppy Trading on Economy Woes

DUBAI — UAE shares dropped for a third day to cap a choppy trading week on Thursday, as bourses continued to track global declines, with most investors treading cautiously on lingering worries over the strength of a world economic turnaround.

By Rocel Felix

Published: Fri 6 Nov 2009, 10:37 PM

Last updated: Sun 5 Apr 2015, 9:50 PM

Dubai index heavyweight Emaar Properties clawed back from heavy losses in early trade to trim its losses to 3.5 per cent to Dh4.45.

Arabtec Holding, the country’s biggest construction company, fell by 3.8 per cent to Dh3.04.

The benchmark index of the Dubai Financial Market edged down by 1.9 per cent to 2,097.63.

The index lost 4.5 per cent from  last week.

The main index of the Abu Dhabi Securities Exchange fell by 1 per cent to 2,929.14 and was down by 3.4 per cent from the previous trading week.

Trading was thin with the combined value of shares traded in the two bourses reaching just Dh683.41 million. “Local markets were taking directions from international markets the entire week, but the selling is much more aggressive here,” said Marwan Shurrab, vice-president and chief trader at Gulfmena Alternative Investments.

“We are losing a bit more ground as sentiment is quite volatile. There is also the noticeable absence of foreign funds and day traders have again dominated the market,” said Shurrab.

Investors focused on blue chips, turning their attention to banking, property and construction-related stocks. Contractor and engineering company Drake & Scull International, shed 1.9 per cent to Dh1, Deyaar Development lost by 1.9 per cent to Dh1, while Union Properties gave up 2 per cent to Dh0.96.

Dubai Islamic Bank edged down by 2.4 per cent to Dh2.75.

While trading will likely continue to be volatile next week, investors are still hopeful that earnings results in the fourth quarter will be a major improvement from the third quarter.

“Investors generally expected the third quarter to show stability, and the next quarter will confirm if conditions are better. It would be good to consider defensive plays for medium and long-term accumulations,” said Shurrab.

In Abu Dhabi, Sorouh Real Estate paced decliners in the property sector, falling by 4.9 per cent to Dh3.15. Property market leader Aldar Properties was down by 1.5 per cent to Dh5.35, while Ras Al Khaimah Properties declined by 2.7 per cent to Dh0.71.

· rocel@khaleejtimes.com