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Dubai market declines 2.54% on profit-booking
The Dubai stock market benchmark dropped on Monday after investors moved in to lock profits after Sunday's hefty gains of 387 points or 9.87 per cent.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:53 September 22, 2008
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Dubai: The Dubai stock market benchmark dropped on Monday after investors moved in to lock profits after Sunday's hefty gains of 387 points or 9.87 per cent.
The Dubai Financial Market General Index declined 109 points or 2.54 per cent to close at 4,200.53.
The Abu Dhabi benchmark, however, gained 1.65 per cent to end at 4,014.47, extending its two-day rally to 7.52 per cent.
Volumes on DFM fell to 443.82 million shares compared to 720.67 million on Sunday and value traded also declined to Dh1.81 billion from Dh2.65.
On ADX, however, volumes climbed 27.69 per cent to 258.53 million shares and the turnover was up from Dh927.82 million to Dh1.50 billion.
"Dubai was bound to correct itself after Monday's huge upside of almost 10 per cent," said Amro Diab, head of GCC institutional sales, EFG-Hermes UAE.
"Abu Dhabi's gain on Sunday was not as high as Dubai, and so it continued its rally for the second day."
Sherif Abdul Khalek, manager of institutional accounts at Beltone Financial Securities, said: "It's not surprising to see daily traders coming and cashing in on the opportunity after the huge jump we saw on DFM. Also, Dubai compared to Abu Dhabi is more volatile and liquid."
On DFM, real estate, banking and finance shares indices lost 3.26 per cent, 1.09 per cent and 3.55 per cent respectively.
Emaar Properties, the most liquid stock of the day and which had jumped 15 per cent on Sunday to Dh8.05 slipped 2.98 per cent to close at Dh7.81. Union Properties declined 6.23 per cent to Dh3.16.
On Sunday, a EFG-Hermes report said house prices in Dubai are expected to decline in the second half of 2009, with a cumulative decline of around 15 to 20 per cent by 2011.
Tamweel and Amlak Fin-ance, the mortgage giants, decreased 4.77 per cent and 3.72 per cent to end at Dh3.99 and Dh3.62 respectively.
Ajman Bank fell 4.15 per cent, but Emirates NBD was marginally up 0.22 per cent to close at Dh9.14. Dubai Islamic Bank was down 4.15 per cent.
In Abu Dhabi, Aldar Properties and Sorouh Real Estate jumped 8.11 per cent and 7.69 per cent to Dh8.40 and Dh6.58 respectively. Arkan Building Materials gained 2.47 per cent to Dh6.22.
Banking stocks had a mixed day with First Gulf Bank climbing 5.33 per cent to end at Dh16.80. National Bank of Abu Dhabi fell 1.56 per cent to Dh15.50.
Energy stocks extended their rally with Dana Gas increasing 6.97 per cent to Dh1.40 and Abu Dhabi National Energy Co, also known as Taqa, jumping 7.34 per cent to Dh2.34.
Analysts had their own take on the week ahead.
While Diab said he could not hazard a guess, Khalek was of the view that there will be some accumulation.
"You have attractive valuations, but the market is not looking at that. I guess the markets are reacting to other markets in the region and elsewhere," Diab said.
The DFM is likely to see some consolidation in the range of around five per cent, Khalek said.
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