Business | Markets
UAE benchmarks rise but future remains uncertain
UAE indices climbed for the second consecutive day on Tuesday. However, gains remained quite small relative to the recent big losses.
- By Gaurav Ghose, Financial Features Editor
- Published: 20:12 September 9, 2008
Dubai: UAE indices climbed for the second consecutive day on Tuesday. However, gains remained quite small relative to the recent big losses.
"It is too early to say whether it is the start of a rebound. We need to see confirmation of a bottom first," said Anne Marie Browne, foreign institutional sales, Al Futtaim HC Securities. "The two-day gain is likely to be short-lived and is a natural reaction to the large selloff that occurred in the UAE markets on Sunday. Although foreigners remain net sellers, some investors are beginning to accumulate in names such as Aldar, Sorouh and Air Arabia, which are favoured among foreigners."
Real estate stocks, led by Aldar Properties and Sorouh Real Estate, helped the Abu Dhabi Securities Exchange (ADX) index gain 0.33 per cent to close at 4,182.92.
Aldar continued to be the most liquid stock as it traded shares worth Dh123.15 million, gaining 21.12 per cent to Dh8.69. Sorouh was the second-most liquid stock with a turnover of Dh99.63 million. It increased 1.40 per cent per cent to Dh6.52.
Energy stocks also closed higher on ADX, with Dana Gas gaining 0.67 per cent to Dh1.51 and Abu Dhabi National Energy Company, also known as Taqa, closing 0.40 per cent up to Dh2.51.
The Dubai Financial Market (DFM) rose slightly, with the index expanding 0.18 per cent to close at 4,481.63.
Air Arabia ended 2.82 per cent higher on the news of oil price declining further. Emaar remained flat at Dh8.08.
Tamweel, the biggest mortgage lender in the UAE, slid 4.06 per cent to Dh5.20 on the news that its deputy CEO Abdullah Nasser Abdullah has been detained by the Dubai authorities in a corruption investigation.
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