UAE investors adopt ‘wait-and-see’ mode as they await fresh leads

Dubai: UAE indices edged lower on Wednesday as traders went in wait-and-watch mode as they await fresh leads.

The Dubai Financial Market General Index (DFMGI) ended 0.51 per cent lower at 3,285.06, while the Abu Dhabi Securities Exchange General index closed 0.77 per cent lower at 4,292.06.

“There is no direction in the market, which is trading flat. There is nothing happening, so why would people buy sell or do anything? Even in the global market, people are waiting for triggers,” said Hesham Khairy, head of Institutional Trading at Menacorp, adding that “when the markets break any support or resistance, we will see some interest pick-up.”

In stock-specific action, Arabtec ended 0.69 per cent lower at Dh1.44, while Emaar Properties closed the day’s session 0.16 per cent lower at Dh6.36.

DP World close almost 1 per cent lower to end at $18.58 (Dh68.24).

In Abu Dhabi, Eshraq Properties ended 2.56 per cent lower at Dh0.76, while RAK Properties ended more than 3 per cent lower at Dh0.59. Waha Capital ended 0.50 per cent lower at Dh1.99.

Tumbling volumes

Volumes fell to Dh295 million on Wednesday in Dubai, almost half of the traded value registered last month, and analysts expect volumes to fall further.

“Markets will remain sideways after Ramadan until [a] major event happens globally,” Khairy said. “Even investors are not looking at the screen. Nobody is watching the markets, and [instead, investors] have put alerts.”

Investors are also expected to be looking at second-quarter results to get fresh leads.

Meanwhile, elsewhere in the Gulf region, Saudi Arabia’s Tadawul All Share Index (Tasi) was 0.04 per cent lower at 6,737.40, while the Muscat MSM 30 Index closed 0.12 per cent lower at 5,952.46.

Dubai Parks’ rights jump over 10%

Dubai Parks and Resorts rights jumped more than 10 per cent after the issue was subscribed close to a 100 per cent on the first day of trading last week.

Dubai Parks and Resorts rights rose more than 10 per cent to end at Dh0.27, while Dubai Parks and Resorts shares ended 0.79 per cent higher at Dh1.28.

“Dubai Parks is a good name. It would render value once projects come online,” said Mohammad Shabbir, head of equity funds & portfolios at Rasmala.

Traded value in Dubai Parks and Resorts rose on Wednesday, making it the most actively traded share on the Dubai bourse.