Business | Markets
Abu Dhabi index up for third day
Declining share prices of real estate firms and banks led to a fall in the Dubai market, while Abu Dhabi shares climbed for the third consecutive day on Monday.
- By Gaurav Ghose, Financial Features Editor
- Published: 00:06 May 27, 2008
Dubai: Declining share prices of real estate firms and banks led to a fall in the Dubai market, while Abu Dhabi shares climbed for the third consecutive day on Monday.
The Dubai Financial Market General Index lost 1.2 per cent to close at 5,636.7. The market turn-over declined by about Dh513 million, with 16 traded stocks declining and four advancing. Two remained flat.
The Abu Dhabi Securities Exchange Index gained a marginal 0.2 per cent to 5,016.2.
However, Dubai's decline does not change the fact that some of the companies in Dubai are fundamentally strong, some even undervalued, believes, Mohammad Ali Yasin, managing director, Emirates Securities.
"The fundamentals are not the driving factors, but the day to day traders, the speculators, who are the drivers at the moment and so you don't' see the markets reacting to the share pricing of some of the companies," said Yasin.
"I think that Dubai Fin-ancial market has lost some of its shine to the Abu Dhabi exchange, because there is more activity and liquidity there and speculators move where they can do more speculation," he said.
In Dubai, the most prom-inent real estate developers, Emaar and Union Properties, which were among the top five companies in terms of turnover, fell 2.2 per cent to Dh11.30 and 1.6 per cent to Dh5.05 respectively.
The two largest mortgage firms in the UAE, Tamweel and Amlak Finance also retreated. While the former went down two per cent to Dh7.9, the latter and 1.2 per cent to Dh4.8.
Emirates NBD closed at Dh11.70, declining 2.5 per cent.
In Abu Dhabi, real estate, energy and telecommunications aided the upward movement.
Dana gas and Aldar Poperties were the top two in terms of turnover, valued at Dh395.7 million and Dh262.7 million. While Dana closed at Dh2.1, up 0.01 per cent, Aldar climbed .23 per cent to Dh12.4.
Of the 44 traded stocks, 22 declined, 18 advanced and four remained unchanged.
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