Business | Markets
Markets end with Dubai up and Abu Dhabi down
Volatility in the UAE stock markets continued yesterday as retail investors traded selectively to take advantage of the corrective rally seen in the new year.
- By Gaurav Ghose, Financial Features Editor
- Published: 23:38 January 7, 2009
Dubai: Volatility in the UAE stock markets continued yesterday as retail investors traded selectively to take advantage of the corrective rally seen in the new year.
While Dubai rose for the second time in three days, Abu Dhabi fell for the first time this week after gaining nearly seven per cent in two days.
The Dubai Financial Market General Index advanced 1.57 per cent to close at 1771.32. Abu Dhabu Securities Exchange Index slipped 0.56 per cent to 2541.16.
"Most of the trade right now is dominated by retail, and local and regional institutions are watching from the sidelines," said Sharif Abdul Khalek, manager of institutional accounts for Beltone Financial Securities.
"Everyone is now waiting for the Q4 results. And with the cancellation of Arabtec's [Meydan] contract yesterday, there are concerns about government related projects. "
The Dubai benchmark went up on gains made by Emaar Properties, Dubai Financial Market, Deyaar, Emirates NBD, Shuaa Capital and Air Arabia.
Arabtec continued to be sold with bearish sentiment revolving about its prospects after the cancellation of the Meydan racecourse project. In two days the stock has lost nearly 17 per cent.
"The DFMGI staying above 1,720 is a good support level of the corrective rally which we are witnessing," said Shiv Prakash, equity investment analyst for Mac Sharaf Securities.
"Hopes are ... we can see 1,800 breakout and since markets are oversold, 1,800 is the critical resistance level. If we see any kind of a breakout, then there are chances of resistance of 2100-2200."
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