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UAE Shares Mixed in Thin Trade Ahead Of Q2 Results

The benchmark index of the Dubai Financial Market slipped by 1 per cent to 1,681.92, it weakest close since April 22 when it ended at 1,677.59. The main index of the Abu Dhabi Securities Exchange was steady, inching up by just 0.3 per cent to 2,589.07. Trading was thin with the combined volumes in both bourses reaching only Dh355.3 million.

“The markets are desperate for positive catalysts and are liable to drift lower next week unless some earnings or news gives reason for buyers to take the initiative,” said Matthew Wakeman, managing director of cash-and-equity-linked trading at EFG-Hermes.

Dubai index mover Emaar Properties, the Middle East’s biggest property developer, continued to slide, falling by 1.3 per cent to Dh2.37 as investors remained jittery about the uncertainty over its planned merger with the real estate business of 
Dubai Holdings.

Bahrain-based SICO Investment Bank said it was reviewing its rating on Emaar. “Emaar’s long-term valuations are attractive for risk-seeking investors. However, the stock is expected to underperform in the medium term as investors continue to place a significant transparency discount on the stock price,” SICO analyst Ambereen Jiwani said.

Shares of the stock exchange operator DFM PJSC, declined by a hefty 5.3 per cent to Dh1.43, a consequence of recent faltering volumes.

Emirates NBD, the country’s biggest bank by assets, lost by 2.1 per cent to Dh3.28, stretching its two-day losses to 6.1 per cent.

The bank had the credit rating of its two units, Emirates Bank International PJSC and National Bank of Dubai PJSC, cut to A-/A-2 from A/A-1 by Standard & Poor’s. Bucking the trend, Shuaa Capital reversed early trading declines, rising by 3.5 per cent to Dh1.49.

The UAE’s biggest investment bank sued Orion Holdings Overseas for “breach of obligations” and sought damages related to losses on its investment of Dh115.9 million.

Haissam Arabi, chief executive officer and fund manager at Gulfmena Alternative Investments said the bourses will be flat to lower next week in the absence of compelling fresh leads.

“The markets are taking a breather as they ran ahead of themselves in the two-wave rally since March. We are back to the March level, but there is no reason to fall back to the losses prior to that period. The volume that was lacking in recent sessons should come back, especially after the quarter results come trickling in and show that previous rallies were justified.”

Abu Dhabi snapped four days of losses, led by banks. The National Bank of Abu Dhabi added 1.8 per cent at Dh9.99 while First Gulf Bank rose by 2.2 per cent to Dh14.


rocel@khaleejtimes.com