UAE investors await news from US

Abu Dhabi: UAE markets reported a mixed performance yesterday on relatively low volumes, as investors await the US Federal Reserve Bank's decision regarding interest rates, which will likely be matched closely by the UAE's Central Bank.

Dubai's benchmark index advanced 0.79 per cent to 5,494.20 as Emaar Properties slowed the pace of decline and retreated by 0.41 per cent to Dh12.25. Dubai Investments (DIC) surged 7.5 per cent to Dh5.59 after it revealed a 52 per cent increase in profit for 2007.

Consolidation

Other leading shares reported lower volatility and mixed performance. Deyaar Development advanced by 1.6 per cent, while Air Arabia was unchanged, Amlak Finance retreated by 2.93 per cent.

"After the strong correction, it seems that investors are consolidating their positions, and the low volumes at this point are a positive indicator," said Sherif Abdul Khalik, dealing room manager at Al Futtaim HC-Securities.

In Abu Dhabi, the general index fell 1.23 per cent to 4,573.10, on account of etislat's decline by 1.88 per cent to Dh23.50, despite reporting 19.7 per cent increase in net profit for 2007 on Monday.

Similarly, the National Bank of Abu Dhabi retreated slightly by 0.21 per cent to Dh23.95, although it reported 19 per cent increase in net profit to a record of Dh2.5 billion.

The real estate and energy sectors continued the downtrend. Aldar properties fell 1.94 per cent to Dh10.10, and Sorouh Real Estate by almost 1 per cent to Dh8.16. Dana Gas plunged 375 per cent to Dh2.31.

Overall, less than Dh2.8 billion worth of shares changed hands, of which Dh2.3 billion were in Dubai. The Emirates Securities General Index fell 0.28 per cent to 5,767.30.

Dissatisfaction: Trading complaints

Some investors and brokers at the Dubai Financial Market (DFM) complained from the market's decision to suspend trading on the shares of Dubai Investments (DI) for 20 minutes, and the resumption of trade after the company disclosed 52 per cent increase in net profit for 2007.

Investors who were offering the shares before the suspension claimed they could have received a higher price if they knew that information beforehand.

Brokers, on the other hand, were dissatisfied due to the limited time that was made available for taking important investment decision, which might involve communication with clients.

According to an official at the Emirates Securities and Commodities Authority, the measure is up to the stock market's management to decide, while it is considered legal as long as fairness exists, whereas all the concerned parties receive the information at the same time.

"Legal or illegal is not the question here, what matters is that it was unfair to some investors and many brokers," said Sherif Abdul Khalik, dealing room manager at Al Futtaim HC-Securities. "Brokers were allowed five minutes on average to react, and this is a very short time to ensure that everyone knows."

DFM maintained that this was not the first time the market had suspended and resumed trading on a share during the same session.

"If we receive a disclosure during the session, we are obliged to suspend trading, and circulate the information to all parties, and subsequently resume trading" said Eisa Kazim, chairman of DFM.

"When we do this we cannot cancel all the bids and offers on the system, for both the seller and the buyer, were willing to do this transaction when both were equal in their knowledge, and that is fair to both," he added. Nevertheless, Al Kazim blamed the companies that decide on disclosing results during the session leaving no choice for the market but to suspend the trading.