Business | Markets
Renewed buying lifts UAE stocks
Dubai and Abu Dhabi witness marginal rise despite low trading volumes and turnover
- By Gaurav Ghose, Financial Features Editor
- Published: 23:21 August 18, 2008
Dubai: Buying picked up on attractive valuations which led UAE shares to positive territory on Monday.
The Dubai Financial Market General Index rose 0.47 per cent to close at 5012.31 while Abu Dhabi Securities Exchange Index advanced 0.53 per cent to 4,558.04.
Trading volumes and turnover continued to be low, with Dubai trading shares worth Dh530.30 million and Abu Dhabi having a turnover of Dh443.61 million.
After two straight sessions of loss, close to 10 per cent, Tamweel bounced back to gain 3.58 per cent to Dh6.07. "The company's price to earnings ratio has come down to a very low level because of the recent news [of the arrest of the former top officials], and the fundamentals of the company are good and will remain that way in the long term," said Shiv Prakash, technical analyst, Mac Sharaf Securities.
Bloomberg reported that the shares of the company had reached the lowest valuation level on record on Sunday, which was 8.02 times its earnings. "We cannot see any sharp decline from here," Prakash said. "Even the markets are on the support level and moving sideways."
Ajman Bank witnessed good volumes and had a turnover of Dh194.80 million. It advanced 3.04 per cent to close at Dh3.05. Emaar Properties also moved up 0.93 per cent to Dh9.78. "For Emaar Dh9.90 is the level where sell-off starts, Dh9.60 is where the buying starts," Prakash added. "So it's in a zone between Dh9.60 and Dh9.90. If it clears Dh10, it will go up to Dh10.25 and Dh10.80 levels."
In Abu Dhabi, early on in the session yesterday, Aldar Properties and Sorouh Real estate witnessed some buying and accumulation. In the late sessions, Sorouh saw some selling, but Aldar held firm on Dh10.50 after making a high of Dh10.85. Sorouh closed 1.01 per cent up to Dh7.99. Aldar ended 2.42 per cent higher.
Dana Gas pushed up 2.94 per cent to Dh1.75. Other gainers included Abu Dhabi Commercial Bank, First Gulf Bank and Rak Properties.
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