After a very weak start today, Dubai stock markets, especially Abu Dhabi, bounced back towards the end of the trading sessions. The Dubai Financial Market ended minus 5.61 per cent at 1831.48 after going down to almost seven per cent intra-day, with Aramex and Air Arabia in the green, both up 2.53 and 2.13 per cent respectively. However, Emaar, Shuaa Capital and Arabtec went out of the session with more than nine per cent losses.
Confidence in Abu Dhabi came back, lifting the ADX index to minus 3.57 at 2573.02 after an intra-day-low of almost six per cent. National Bank of Fujairah led the winners with 9.9 per cent. RAK Bank gained 7.14 per cent. Loser of the day was Sorouh Real Estate with ten per cent, followed by union National Bank and Bildco with minus 9.91 per cent each.
At 13.00 hrs, Dubai Financial Market was down 6.02 per cent at three hours into the trading session today. The index was at 1,823.
Emaar was then down 9.87 per cent while Aramex lost 5.7 per cent. Air Arabia fell 1.06 per cent. All stocks are still down.
Abu Dhabi’s market index was down 4.60 per cent to 2,545. All sectors are down but real estate was hit the worse at a 9.80 per cent dip. Aldar lost 9.88 per cent and Sorouh lost 10 per cent. Abu Dhabi Commercial Bank lost 9.90 per cent. Etisalat bucked the trend, gaining 2.45 per cent.
Earlier, at intra-day trading, the Dubai Financial Market was down 6.68 per cent at 1,810 points. All 24 listed stocks are down. DFM Benchmark Emaar traded down 9.87 per cent; Air Arabia dropped 3.19 per cent., while Aramex fell 5.7 per cent.
The Abu Dhabi exchange was down 5.49 per cent to 2,521 points, inching up after the morning’s losses. Market movers Dana Gas fell 5.21 per cent, Aldar lost 9.88 per cent and Sorouh shed 10 per cent.
Union National Bank, Abu Dhabi Commercial Bank and Arkan Buildings fell up to ten per cent, while National Bank of Fujairah and RAK Poultry rose more than nine per cent. Also up were Bank of Sharjah, Etisalat and Sharjah Islamic Bank.
Earlier when trading began today after a massive sell-off on Monday, the UAE’s bourses continued the previous day's fall. Dubai’s stock market index DFM came down 6.15 per cent initially while Abu Dhabi’s ADX plunged 5.86 per cent. Nasdaq Dubai retreated 8.6 per cent.
Among the stocks hardest hit were financial and property companies. Emaar, Drake & Scull and Arabtec fell almost ten per cent, as did Dubai Islamic Bank and Shuaa Capital. Not a single Dubai stock was in the green in the morning.
All market sub-indices are down without exception led by real estate, which is down 9.90 per cent, energy is down 9.10 per cent, banking is down 6.37 per cent and consumer stocks are down 5.10 per cent.
Market analysts say investors are discomforted by Dubai government’s efforts to restructure some of its debt. The markets will likely pick up after greater clarity emerges about Dubai World's plans.