Business | Markets
Miserable week as Dh18b wiped off UAE stocks
UAE stocks recorded Dh18 billion of losses in market capitalisation this week, driven by Emaar Properties, and the scheduled flotation of Air Arabia this Sunday.
- By Ahmed A. Elewa, Staff Reporter
- Published: 00:00 March 16, 2007
Abu Dhabi: UAE stocks recorded Dh18 billion of losses in market capitalisation this week, driven by Emaar Properties, and the scheduled flotation of Air Arabia this Sunday.
Since the disclosure of the 2006 financial statements when the share price stood at Dh13.45, Emaar has been under tremendous pressure as investors speculated the value of its dividend.
The relatively low dividend, in addition to the withdrawal of its Egyptian partner from Emaar Misr, added to that pressure and dragged the price further down, to end the week at Dh11.80, losing 6.7 per cent or Dh6.1 billion in market capitalisation, according to the weekly report of Amanah Capital.
Further, many investors were repositioning themselves to prepare for Air Arabia's subscription, and accordingly partial liquidations was the norm this week.
Dubai's general index retreated by 4.73 per cent to 3,944.51, with the real estate sector leading the decline, followed by the banking sector, where Emirates Bank International fell by 7.3 per cent to close at Dh12.65, losing Dh2.3 billion in market capitalisation.
du was also among the top losers falling by 6.6 per cent to Dh5.40, while Dubai Financial Market retreated in its first week of trading by 7.5 per cent, losing Dh1.4 billion of its market's value.
Accordingly, most of the heavy losses were recorded in Dubai, while Abu Dhabi's general index declined less sharply by 1.25 per cent to 3,000.44.
Aldar Properties accumulated heavy losses during the week, on account of floating the founders' shares. However, allowing foreigners to trade in 40 per cent of the company on March 18, lifted the price yesterday to Dh4.05 after touching Dh3.79 during the week, according to Emirates Securities' weekly report.
The Emirates Securities general index declined by more than 3 per cent, to end the week at 4011.83 points.
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