Dubai Financial Market index drops

DUbai: The Dubai Financial Market (DFM) index fell 1.2 per cent on Tuesday as investors booked profits, mainly in real estate stocks Emaar and Deyaar, and both companies ended lower.

As many as 137.07 million shares of Emaar were traded, the combined value of which was Dh662.06 million. The stock fell 1.26 per cent to close at Dh4.71.

The DFM index fell to close at 2,295.54. As many as 530.17 million shares worth a combined Dh1.34 billion were traded. Of the 30 companies traded, seven rose, 20 fell and three remained unchanged.

Gulf Finance House was the biggest gainer, its shares rising 15 per cent to Dh2.07. Almadina was the biggest loser, falling 9.68 per cent to Dh2.24. Shares of Emaar were the most actively traded, both in value and volume.

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

The Abu Dhabi Securities Exchange (ADX) general index rose marginally, but trading volumes remained low.

The index rose 0.19 per cent to close at 3,183.26 with real estate, insurance and energy stocks leading. Market participants say they are cautiously optimistic about the global economic recovery and third-quarter earnings of local companies will determine the course of the market in the near term. In the meantime, they have adopted a wait and watch strategy. On Tuesday, more than 139.66 million shares worth a combined Dh300.85 million were traded.

Of the 35 companies traded, 17 rose, 11 fell and seven remained unchanged. Abu Dhabi National Insurance Company was the day's main gainer, its shares rising 6.74 per cent to close at Dh6.50.

Shares of Union Insurance fell the most, down 9.93 per cent to close at Dh2.63. Real estate major Aldar was the most actively traded by value, while RAK Properties was the most active by volume.

Analysts 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 would sustain bullish sentiments.