Business | Markets
Markets decline despite Burj Khalifa euphoria
Dubai Financial Market index fell 2.60 per cent while Abu Dhabi Securities Exchange index fell 0.51 per cent to close at 2,758.09
- By Himendra Mohan Kumar, Staff Reporter, Gulf News
- Published: 14:56 January 4, 2010
Dubai: The Dubai Financial Market (DFM) index fell 2.6 per cent on Monday on profit-booking ahead of the opening of the world's tallest building, the Burj Khalifa.
The DFM index dropped to 1,817.13 after closing 3.44 per cent higher on Sunday, the first trading day of the new year.
In all, 355.26 million shares worth Dh976.29 million were traded. About 162.55 million shares of Emaar worth Dh669.33 million were traded, closing 3.37 per cent lower at Dh4.02.
Market analysts say the real estate companies are set for gains this year as many of their projects are scheduled for delivery this year, which may lift the market.
"The fourth-quarter earnings of companies due to be announced this month are likely to be mixed. We could see banks' profitability drop due to higher provisions, but could see an improvement in the profitability of real estate companies," says Nabeel Farhat, partner with Al Fajer Securities.
Of the 28 companies traded, only one rose and 27 fell.
The top gainer was Takaful-EM, closing 1.71 per cent higher at Dh1.19.
Hits Telecom was the top loser, closing 9.35 per cent lower at Dh1.26.
Emaar was the most traded stock in terms of both value and volume.
Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index fell 0.51 per cent as investors chose to book profits ahead of the opening of the world's tallest building — Burj Dubai — in line with investor sentiment in Dubai.
The ADX general index closed at 2,758.09, pressured by health care, insurance, telecommunication, energy and banking stocks.
Market analysts say real estate companies will reach a turning point this year as several new projects will be delivered, which will likely lift market confidence.
In 2009 the ADX general index gained 14.79 per cent despite highly volatile conditions triggered by turmoil on global financial markets, dwindling liquidity and Dubai's debt restructuring.
On Monday, 37.82 million shares worth a combined Dh86.07 million were traded.
Of the 35 companies traded, 10 rose, 20 fell and 5 remained unchanged.
Abu Dhabi National Hotels was the top gainer, rising 9.84 per cent to close at Dh4.13.
Abu Dhabi National Insurance Company was the top loser, falling 9.90 per cent to Dh8.10.
Aldar Properties was the most active by value, while energy company Dana Gas was the most active by volume.
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