Local stocks slide as investors stay cautious

Dubai: UAE shares edged down as market sentiments continued to be bearish but the relatively sharp movements on the downside witnessed in the past two months seem to be slowly coming to an end.

"I think the markets have almost reached a bottom," said Amro Diab, director of GCC institutional sales at EFG-Hermes. "All the expected negative news have already been factored in the prices. The market will go sideways now with high volatility."

The Dubai benchmark declined 0.61 per cent to close at 1,948.94. of the 25 stocks traded, 18 retreated and seven advanced. The Abu Dhabi Securities Exchange Index fell 0.71 per cent to 2,713.90, with 21 stocks decreasing, 11 advancing and one remaining flat. "The small declines can be attributed to trading opportunities which the investors are taking advantage of," Diab said. "As an example, Emaar was trading Dh3.09 (on Thursday) and today (yesterday) it was Dh2.99."

In a bearish market, good news doesn't seem to be affecting investor sentiments.

Buck trend

"The biggest thing today was the complete discounting of the 'Citi Group investment in Dubai', as the markets totally shrugged it off," said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage. Citi announced yesterday that it was lending $8 billion to Dubai government's different entities. Emaar Properties fell 1.64 per cent. Deyyar was the other real estate stock, which shed 2.86 per cent to end at Dh0.68. Shuaa Capital was the biggest loser of the day on DFM, retreating 9.88 per cent to Dh1.46.

The Dubai Financial Market company declined 1.57 per cent to Dh1.25. du fell 1.04 per cent to Dh2.85.

However, Arabtec bucked the trend, jumping 8.39 per cent to close at Dh4.78, its highest gain in two weeks. It was reported that Arabtec has won a contract from Aldar Properties to build the Cleveland Clinic in Abu Dhabi.

Reversing Sunday's loss, Emirates NBD gained 2.86 per cent to end at Dh3.60.

On ADX, real estate stocks Aldar Properties, Sorouh Real Estate and Rak properties fell 0.19 per cent, 1.16 per cent and 1.49 per cent respectively.