Abu Dhabi: The UAE bourses continued its pattern of weak trade marred with low volumes that started with the beginning of August, as the Dubai Financial Market (DFM) index went up 0.11 per cent on Sunday to reach 4,739.95.
The Abu Dhabi Securities Exchange (ADX) also moved slowly with the general index gaining 0.37 per cent to reach 4,943.20.
Liquidity was low in both markets with just over Dh290 million traded on DFM, and around Dh108 million traded on ADX.
In Dubai, real estate developer, Arabtec topped the market in terms of value, accounting for 23.6 per cent of the total trade value on DFM. Its share prices went up 0.49 per cent to reach Dh4.12. Meanwhile, Air Arabia gained 2.17 per cent, and Gulf Finance House rose 0.19 per cent.
However, Drake & Scull International fell 4.2 per cent, Union Properties dropped 1.44 per cent, and Emaar slid 0.51 per cent.
In the capital, International Fish Farming Holding Co (Asmak) topped the gainers’ list with a 14.87 per cent change, followed by Ras Al Khaimah National Insurance Company with 7.25 per cent, Ras Al Khaimah Cement Company with 5.74 per cent, and Arkan Building Materials Co with 4.42 per cent.
Analyst Osama Al Ashry discussed market performance saying that it was in a period of downtrend, and attributed low activity to Arabtec.
“I don’t think investors’ being on holiday is a good enough excuse to see such a steep drop in trade values because nowadays everyone trades online. I think there’s something abnormal with the market, and I think Arabtec is holding back DFM,” he said.
Positive performance
Al Ashry added that the volatility on DFM, coupled with the lack of transparency from Arabtec, has made many foreign investors reluctant to trade in DFM. Negative news coming out from the international market is also contributing to low activity.
“I don’t think the markets will be safe until more liquidity enters, and the indices cross the 5,000 point. There are, however, some stocks that are showing signs of positive performance like Aldar Properties, Air Arabia, Dubai Islamic Bank, and Gulf Finance House,” Al Ashry, a member of UK organisation, Society of Technical Analysts, said.
On the short term, the DFM index has a resistance level on 4,985 in order to cross the risky area. However, as long as it is trading at around 4,750, the market is neither on the safe side nor is it risky, according to the analyst.
Of the 30 stocks traded on DFM, 17 went up, nine went down, and four remained unchanged. Of the 27 stocks traded on ADX, 15 advanced, eight declined, and four remained flat.