Dubai
The UAE’s main stock market indices were nearly flat on Wednesday as smaller cap stocks continued to account for a bulk of trade in both Dubai’s and Abu Dhabi’s bourse.
The Dubai Financial Market (DFM) index inched up to end the day at 3,417.34, up 0.06 per cent, while the Abu Dhabi Securities Exchange (ADX) general index rose 0.5 per cent to reach 4,413.68.
In Dubai, Arabtec and GFH Financial Group remained the most actively traded stocks in terms of value, and collectively accounted for 40 per cent of the Dh425.9 million traded in the market.
Arabtec share prices slid 1.24 per cent to reach Dh3.19 amid profit-taking on the stock after it gained 12.36 per cent over the past two trading session. The gains earlier were supported by news that Arabtec was awarded a Dh353 million contract to build the UAE pavilion at the Expo 2020.
“Obviously, fundamentals are always going to be in the back of the heads of investors with regards to Arabtec but you have to think about it from a sentiment point of view. The biggest shareholder in Arabtec right now is Aabar [Investments] willing to support the company going forward. At the same time, the in-house restructuring will only benefit the company,” said Marwan Shurrab, head of high net worth and retail brokerage, Al Ramz.
Also on DFM, GFH share prices fell 3.67 per cent, as Drake and Scull International rose 0.53 per cent, and Emaar gained 1.03 per cent. DFM share prices also went up 1.77 per cent.
“The market still looks positive over the medium term with liquidity coming back above the Dh400 million, which is a positive sign. If you’re comparing annually, yes, liquidity is low of course … but going forward, hopefully, liquidity will only get better as markets go into year-end and anticipation for a rebound and economic growth start fuelling in new investments and opportunities,” Shurrab said.
He added that geopolitical tension is likely to continue to cast a shadow on investor sentiment going forward especially amid the Qatar rift and news that North Korea has successfully tested an intercontinental ballistic missile.
On Wednesday morning, Qatar responded to a list of demands by the UAE, Saudi Arabia, Bahrain, and Egypt. The details of Qatar’s response have not been disclosed, but the four Arab countries are scheduled to hold a meeting in Cairo to discuss the future of this rift.
