Dubai: Dubai index fell on Monday led by weakness in Emaar Properties and Damac before the stocks go ex-dividend amid plunging oil prices.
Emaar Properties, which goes ex-dividend on Wednesday, has agreed to give 15 per cent cash dividend, while Damac, which goes ex-dividend on Tuesday, will offer 25 per cent dividend to their dividends.
“Emaar and Damac are going ex-div is negative for markets in the near term,” Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities said.
“We are not progressing because we are weighed down by concerns on crude. People think interest rate cycle is against risk trading,” he added.
Emaar Properties shares closed 2.3 per cent lower at Dh7.23. Damac Properties closed 0.36 per cent lower at Dh2.75. Union Properties fell 3.20 per cent to be at Dh0.99.
Arabtec fell 1.22 per cent to be at Dh0.88.
Traded volumes fell to Dh221 million, from a high of over Dh300 million last week. The Abu Dhabi index, however, rose.
The Abu Dhabi Securities Exchange general index closed 0.2 per cent higher at 4,530.81.
Ooredoo closed 12 per cent higher at Dh101. National Bank of Abu Dhabi closed 1.38 per cent higher at Dh11.05. Commercial Bank International closed 10.76 per cent higher at Dh1.75. Taqa or Abu Dhabi National Energy closed 3.33 per cent higher at Dh0.62.
“We have not responded to positive news, we may be in a line for a bit catch up rally across the board,” Manibhandu said. The Dubai index has gained more than 12 per cent so far in the year, but the traded volumes have fallen by 70 per cent from the high of over Dh1 billion.
“There is liquidity in the market, if there is a positive story, people would latch on to it,” he added.
From now on, attention will turn to results from blue chips property majors. “Some of the banking results were good. Attention would turn to results from Emaar, etisalat,” Manibhandu said.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.13 per cent higher at 6,977.54.
“There are potential reasons for this rally in Saudi to do a little better before Ramadan,” Manibhandu said.
The Qatar exchange index closed 0.43 per cent lower at 10,153.76. The Muscat MSM 30 index closed 0.14 per cent lower at 5,466.61. The Kuwait exchange index closed 0.18 per cent higher at 6,831.07. The Bahrain bourse all share index closed 0.08 per cent lower at 1,335.5.