UAE equities turn bearish
Shares retreat in Dubai as investors wait for results of restructuring talks
Dubai: After what looked like a rebound on the UAE stock exchanges on Sunday, the first trading day after the extended Eid Al Adha holiday, nervous investors drove stocks down again on Monday.
The Dubai Financial Market index ended significantly lower, erasing Sunday's gains and touching a 20-week low.
It closed 5.84 per cent lower at 1,744.83, following strong selling pressure in construction and property shares.
The Abu Dhabi Securities Exchange general index fell 1.73 per cent to 2,626.95 as investors chose to book profits at a higher level in the absence of any significant market moving indications.
All sub-indices declined except consumer and industrial stocks that ended in positive territory.
"Dubai stocks have resumed their slide following (Sunday's) technical bounce and nervousness persists," Mark Friedenthal, fund manager at Abu Dhabi Commercial Bank, said.
Emaar slumped 10 per cent, the most permitted by exchange rules, in Dubai. Union Properties closed at an eight-month low, and Emirates NBD retreated to its lowest level since September 14.
Arabtec fell 9.75 per cent to Dh2.13. The stock market's own shares, DFM, dived 9.68 per cent to Dh1.68.
The single gainer on the Dubai bourse was Dubai Al Salam Sudan Bank, which climbed 8.40 per cent.
Waiting for news
In Abu Dhabi, Al Khazna Insurance was the biggest loser, down 9.73 per cent, followed by Abu Dhabi Commercial Bank, which fell 8.82 per cent and First Gulf Bank, which lost 6.35 per cent.
Among the gainers were National Bank of Fujairah, Abu Dhabi National Hotels and Sudan Telecom.
Nasdaq Dubai nosedived 6.15 per cent, led by DP World which retreated 7.75 per cent.
"The market is anticipating some positive news on Dubai World's debt restructuring which will boost the overall confidence.
Capital ready
"Investors are waiting to pour money back into the UAE markets, they are just on the lookout for some confidence building measures," Vikram Shetty, Fund Administrator with the National Bank of Abu Dhabi Asset Management, told Gulf News.
Across the region, the Kuwait Stock Exchange Index lost 0.8 per cent and Saudi Arabia's Tadawul All Share Index fell one per cent to 6,246.50.
Bahrain's index retreated less than 0.1 per cent. Qatar's DSM 20 Index added 1.1 per cent and Oman's MSM30 Index rose 0.3 per cent.
With inputs from agencies
