Abu Dhabi Securities Exchange declines

Abu Dhabi: The Abu Dhabi Securities Exchange (ADX) general index was dragged down further on Monday in negative territory as investors booked profits.

The index fell 0.92 per cent to 3,177.10 with construction, real estate and banking stocks leading the decline.

As many as 145.13 million shares worth a combined Dh357.95 million were traded. Of the 33 companies traded, only 4 rose, 22 fell and 7 were unchanged. Al Khazna Insurance Co. was the main gainer, its shares rising 2.50 per cent to close at Dh1.23.

Shares of National Bank of Umm Al Quwain fell the most, down 9.82 per cent to close at Dh3.49.

Real estate company Aldar Properties was the most actively traded by value, while RAK Properties was the most active by volume.

Market analysts remain bullish on the near-term prospects of Abu Dhabi's blue-chip stocks.

They say foreign fund inflows into the UAE markets, stock buying by local investors and strong fundamentals of the country's economy are the factors which will sustain bullish sentiments that may well run into 2010.

According to Musa Haddad, Head Trader with National Bank of Abu Dhabi Asset Management, the Abu Dhabi market index may well touch 3,700 by the end of the year if a bull run gathers momentum, helped by global positive sentiments.

Dubai market

The Dubai Financial Market (DFM) index rose 1.36 per cent on Monday after Sunday's fall as real estate stocks Emaar and Deyaar posted gains.

As many as 112.8 million shares of Emaar were traded, the combined value of which was Dh526.79 million. The stock gained 3.47 per cent to close at Dh4.77.

The DFM index closed at 2,323.52. As many as 502 million shares worth a combined Dh1.2 billion were traded. Of the 30 companies traded, 22 rose, six fell and two remained unchanged.

Aman was the biggest gainer, its shares rising 5.88 per cent to Dh1.44. Mazaya was the biggest loser, falling 9.85 per cent to Dh3.02. Shares of Emaar were the most actively traded, both in terms of value and volume.

The day's highlight was Deyaar declaring its third-quarter results. The company posted a net profit of Dh81.6 million, an 8 per cent rise over the second quarter's net profit.

Market analysts say the third quarter earnings of blue-chip companies will set the direction for the UAE markets.

The shares currently have attractive valuations and due to an improvement in risk appetite worldwide on indications the worst of the global recession may have passed, there is a strong likelihood of greater foreign capital inflows into the local bourses, say market participants.