Dubai: The Dubai Financial Market (DFM) index fell yesterday though it managed to close above the psychological 1,500 points — indicating there may be upside potential to the stocks in the days ahead should second-quarter corporate earnings be positive and global macro-economic indicators take a turn for the better.
Traders are building their positions as the second-quarter corporate earnings begin to come in. However, the volume of shares traded on the market continues to be quite low due to lack of buyers and because of Ramadan, a time of the year when the trading activity on the market traditionally slows.
Analysts say economic slowdown in the US, China and Europe will keep the market range bound, near-term with second quarter earnings, global oil prices and international market sentiments broadly setting the Dubai market’s direction..
The DFM index closed at 1,500.64, down 0.29 per cent. Around 26.63 million shares, cumulatively worth about Dh42.08 million were traded on the stock market.
As many as 7.4 million shares of real estate major Emaar, cumulatively valued at around Dh23.72 million were traded on the market on Wednesday, its stock closing unchanged at Dh3.21.
Of the 25 company stocks traded on Wednesday, six rose, while 12 fell and seven closed unchanged. The day’s top gainer was Shuaa Capital, its stock rising 2.28 per cent to close at Dh0.629. Dubai Investment was the day’s main loser, with its shares falling 1.95 per cent to close at Dh0.703. The shares of Emaar were the most traded by value and in terms of volume.
Abu Dhabi: The Abu Dhabi Securities Exchange (ADX) general index fell fractionally yesterday amid a very thin volume of trade as investors stayed away because of Ramadan and lack of catalysts. Economic slowdown concerns in Europe and China have contributed to the market trading sideways in recent weeks.
The ADX general index closed yesterday at 2,464.04, down 0.02 per cent led by the fall in banking and consumer staples stocks.
Analysts say participation of foreign investors on the market remains low despite attractive valuations for several stocks, some of which are trading near their lifetime lows. The market is expected to trade in a range until second quarter earnings of blue chip companies comes out.
The stock of Abu Dhabi’s real estate major Aldar Properties closed unchanged at 1.10, although Sorouh Real Estate’s shares rose 0.99 per cent. About 12.37 million shares of Aldar, cumulatively worth about Dh13.68 million changed hands on the market. The potential merger between Aldar and Sorouh, remains a catalyst for the market, maintain experts.
On Wednesday, around 27.49 million shares, cumulatively worth about Dh24.06 million were traded on the Abu Dhabi stock market. Of the 27 company stocks traded, only nine advanced, while 11 declined and seven closed unchanged.
The top gainer on the Abu Dhabi market yesterday was Union Cement Co, its shares rising 9.78 per cent to Dh1.01 by the close of trading. Agthia was the day’s top loser, its stock closing 4.43 per cent lower at Dh1.94.
The shares of Aldar were the most traded by value and by volume.