Dubai
The UAE’s main equity indices moved sideways on Wednesday amid weak liquidity in the first trade day of the week after markets were closed for three days for the Eid Al Fitr holiday.
The Dubai Financial Market (DFM) index slid 0.68 per cent to reach 3,379.01, with just Dh183 million in total traded values. Most companies listed there ended in the red, with some of the smaller caps seeing large drops.
Arabtec’s share prices plunged 8.33 per cent to end at Dh2.75 per cent after the company reduced its capital to Dh1.5 billion from Dh6.1 billion.
Other smaller cap stocks such as Shuaa Capital also fell 5.13 per cent, while GFH jumped 3.09 per cent to reach Dh2. GFH was the most actively traded stock on the Dubai bourse, accounting for 25 per cent of the market’s traded values.
“I think sentiment is still sideways to a certain extent, with expectations to see liquidity coming back in next week after people come back from their long weekend,” said Marwan Shurrab, head of high net worth and retail brokerage at Al Ramz Capital.
He added, “We saw a really strong move during June, where [the DFM index] moved from the lows of 3,200 — where we thought the market would see a break below that level — to 3,470, which was a major resistance. Right now, the market is profit-taking.”
Shurrab said financial results for the second quarter of 2017, which are expected to start coming out in mid-July, should provide the next catalyst for investors.
In the UAE capital, the Abu Dhabi Securities Exchange (ADX) general index rose 0.41 per cent to reach 4,449.68, with powerhouses such as Aldar Properties, First Abu Dhabi Bank, and Etisalat dominating trade as the most actively traded stocks.
Aldar ended the day flat, as First Abu Dhabi Bank rose 1.43, and Etisalat’s share prices inched up 0.29 per cent.
Elsewhere in the region, stock markets in Saudi Arabia and Qatar were still closed for the Eid holiday. Trading in both markets resumes on Sunday. In Egypt, the EGX30 index was also moving sideways, falling 0.16 per cent to reach 13,400.
