Business | Markets

Dubai trading muted as investors book profits

Abu Dhabi index advances despite lack of catalysts

  • By Himendra Mohan Kumar, Staff Reporter
  • Published: 18:01 November 26, 2012
  • Gulf News

Dubai: The Dubai Financial Market (DFM) index fell by more than three quarters of a per cent yesterday amid abysmally low volume of trading as investors booked profits in the absence of catalysts. Real estate major Emaar and construction company Arabtec led the decline.

Market participants are awaiting the outcome of talks among Eurozone finance ministers on disbursement of funds to Greece to keep it afloat. All eyes are also now set on the US on how it’s going to avoid a fiscal cliff next year that would set in if the Congress doesn’t act.

The DFM index on Monday again lost its critical 1,600 support level after regaining it on Sunday, an indication the market will be prone to greater downside risks in the days ahead if the global macro-economic indicators worsen.

Around 57.13 million shares, cumulatively worth only about Dh78.8 million, were traded on the Dubai market on Monday, compared to Dh205.29 million worth of share transactions on Sunday. As many as 6.67 million shares of Emaar, cumulatively valued at around Dh24.94 million, were traded, its stock closing 0.8 per cent lower at Dh3.70. Arabtec’s shares fell 2.16 per cent to close at Dh2.27.

Of the 27 company stocks traded, two 2 rose while 20 fell and five closed unchanged. The day’s top gainer was Al Madina, its stock rising 1.33 per cent to close at Dh0.685. Unkai was the day’s main loser, its shares fell 10 per cent to close at Dh297.55. The shares of Emaar were the most traded by value while DFM’s shares were the most traded by volume.

Abu Dhabi market

The Abu Dhabi Securities Exchange (ADX) general index bounced back into positive territory on Monday, gaining 0.38 per cent after a fall of 0.22 per cent on Sunday. The volume of trade on the market, however, fell compared to a day earlier due to a lack of interest among overseas buyers and major domestic investors.

The stock market index closed at 2,646.51, below the critical support level of 2,650. Investors bought banking and telecommunication stocks but sold real estate and energy stocks which pared the index’s gains.

The market, currently trading in a range, continues to be supported by high global crude oil prices that are trading well above the $100-a-barrel mark.

Around 40.09 million shares were traded on Monday, valued at about Dh65.32 million, compared Dh78.02 million worth of trading on Sunday. Of the 28 company stocks which traded, nine advanced, 13 fell and six closed unchanged.

The stock of Abu Dhabi’s real estate major Aldar Properties closed 0.8 per cent lower at Dh1.23. About 7.44 million shares of Aldar, cumulatively worth about Dh9.2 million, changed hands on the market. Sorouh Real Estate’s shares also declined by 0.8 per cent to close at Dh1.23.

The top gainer on the Abu Dhabi market was Qatar Telecom, its shares closing 6.38 per cent higher at Dh105. Union Cement Co. was the day’s top loser, its stock falling 7.78 per cent to close at Dh0.83. The shares of Sorouh were the most traded in terms of value and volume.

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