Abu Dhabi: The UAE’s equity markets made gains for the second day in a row on Tuesday, with the Dubai Financial Market (DFM) supported by positive results from blue chip, Emaar.
The DFM index went up 0.78 per cent to reach 3,521.9, while the Abu Dhabi Securities Exchange (ADX) general index rose 0.54 per cent to end at 4,322.16.
Liquidity remained low, however, with Dh386.8 million traded on the DFM on the back of a general negative sentiment and a mood of uncertainty among investors.
Sebastien Henin, head of asset management at The National Investor, said that investors were still keeping an eye on external factors like oil prices to determine whether to invest or not.
“I think in the current environment, people have a very short-term view, and react to any news coming out. No one wants to take a long-term call. We need a catalyst to trigger movements in one way or another, and I think this trend will continue in the coming weeks,” he said.
On DFM, Emaar topped the market in terms of trade value, with its share prices going up 2.31 per cent as Emaar Malls’ also gained 2.22 per cent.
Dubai Islamic Bank rose 1.1 per cent, but Arabtec fell 1.27 per cent along with Damac Properties (down 1.97 per cent) and Dubai Ports World, which slid 0.5 per cent.
Henin said he expected liquidity to remain weak till the end of the way, with volatility expected to remain high until the results season is over.
Discussing performance on ADX, he said, “There are two different patterns in Abu Dhabi. We have etisalat, which is one of the largest powerhouses. It’s holding the market and is very resilient, reaching very close to historic highs.
“At the same time, we have banks that have been under pressure, and investors are more cautious about investing in them, so these are the two main elements in ADX.”
In the capital, Green Crescent Insurance topped the gainers’ list with a 7.35 per cent increase, followed by Aldar Properties with 4.64 per cent, Bank of Sharjah with 4.43 per cent, Ras Al Khaimah Cement Company with 3.41 per cent, and Eshraq Properties with 3.28 per cent.
Of the 35 stocks traded on DFM, 19 went up, 13 went down, and three remained unchanged. Of the 27 stocks traded on ADX, 16 advanced, six declined, and five remained flat.
