Traded value recover in Dubai ahead of long holidays

Dubai: Traders on the Dubai bourse resorted to continued selling and preferred to hold cash and move on the sidelines ahead of an extended weekend, causing a fall in the Dubai index on Thursday.

Traded value jumped fourfold to Dh434 million from a daily average of Dh100 million. The Dubai Financial Market general index closed 0.61 per cent lower at 2,668.66.

“The four-day weekend ahead could keep investors on the sidelines to avoid any global risk impacts,” Issam Kassabieh, Senior Financial Analyst, Menacorp said. The G20 meeting will be held over the weekend in Argentina.

Dubai Investment closed 2 per cent lower at Dh1.35, while Emaar Properties closed 2 per cent lower at Dh4.50. Dubai Islamic Bank closed half a per cent lower at Dh5.24. Union Properties closed 2.97 per cent higher at Dh0.555, after falling in the previous session. “Union Properties saw fresh lows during the session without rebounding near closing as investors express their concerns regarding the company’s future as despite new projects in the pipeline, the company seems to be generating a negative gross margin that is pressuring its cash flow significantly,” Kassabieh said.

Continued fall in Etisalat and First Abu Dhabi Bank shares sent the Abu Dhabi index lower. The Abu Dhabi Securities general index closed 2.27 per cent lower at 4,770.08. FAB closed 3 per cent lower at Dh13.60. Etisalat closed 2.92 per cent lower at Dh16.62. Abu Dhabi National Hotels shares closed 3.23 per cent higher at Dh3.20.

“Abu Dhabi National Hotels is on the rise after talks over the deal with Emaar surfaced as investors are convinced it is the winner in this arrangement but investors should keep any eye on management contracts and consider how Emaar is benefiting as well,” Kassabieh said.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.92 per cent higher at 7,702.99. The Muscat MSM 30 index closed 0.37 per cent higher at 4,412.06.

The Qatar exchange index closed 0.34 per cent higher at 10,364.54.