Business | Markets
UAE indices edge up on low volumes
The Abu Dhabi market rose 0.77 per cent yesterday to end the week in positive territory. However, the Dubai benchmark's marginal 0.17 per cent advance on the day could not help it from declining 0.32 per cent over the week.
- By Gaurav Ghose, Financial Features Editor
- Published: 00:04 May 30, 2008
Dubai: The Abu Dhabi market rose 0.77 per cent yesterday to end the week in positive territory. However, the Dubai benchmark's marginal 0.17 per cent advance on the day could not help it from declining 0.32 per cent over the week.
The Abu Dhabi Securities Exchange index closed at 5,037.85. The index edged up 1.55 per cent this week, taking the year-to-date change to 10.68 per cent. The Dubai Financial Market General Index ended the day at 5,678.59.
The current trend described by analysts as "sideways", however, has implications for the market. "The current sideway correction evident in Dubai started in January 2008 making it a medium-term corrective move that may also be the start of a long-term accumulation phase," said Amr Al Maghrabi, chief technical analyst, Beltone Financial Securities. "The recent two months have witnessed low volatility and low volumes. This is sometimes referred to as the 'silence before the storm', and sooner or later the index must decide what direction to go. Before this is decided, markets go through the current low activity phase."
Abu Dhabi's latest low volatility is also part of the 'minor' sideway correction, Maghrabi believes.
"However, it is clear that Abu Dhabi is picking up. Cash has been flowing out from the major players and into stocks such as Arkan Building Materials, Gulf Cement, Abu Dhabi National Energy, Gulf Pharma, Aldar Properties and National Bank of Abu Dhabi, in the Abu Dhabi market."
Union Properties, Emaar and Tamweel were the top three stocks in terms of turnover in Dubai. While the real estate sector advanced 0.48 per cent, banks added 0.31 per cent. Emirates NBD rose 0.84 per cent to Dh 11.85.
In Abu Dhabi, the construction sector continued its upward momentum, adding 3.69 per cent. Arkan Building Materials was up 2.97 per cent to Dh6.25, Ras Al Khaimah Cement advanced 6.93 per cent.
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