Abu Dhabi: Share prices for the recently-relisted Amlak went up 12.55 per cent on Tuesday, accounting for a massive 58 per cent of the total value traded on the Dubai Financial Market (DFM).
Despite seeing Dh871.2 million in trade that brought prices to Dh2.78 at the day’s end, analysts attributed that to efforts by brokers aimed at bringing up share prices.
Mohammad Yasin, managing director of the National Bank of Abu Dhabi securities, said that Amlak was not the best share for those looking for a fundamental-based investment.
“[The figure] is driven by traders. This is not fundamentally-driven, and there’s a lot of turnaround happening on this share (Amlak). However, people are making money on trading it and flipping it once or twice a day, and I think that helps to show that the appetite is positive for investors,” he said.
Yasin added that the heavy trade in Amlak shows that there are speculative investors in the market who are flipping the share regularly rather than long-term ones.
“People are playing technically, and that’s giving them a signal to buy, so whoever wants to trade on Amlak or play a traders game should know that the risks are high. If they’re happy with those risks, then they know what they’re getting themselves into,” he said.
Amlak’s share prices started the day’s trade at around Dh2.47, climbing steadily throughout the day to reach a high of Dh2.81 at around 11.45am, before falling gradually to its closing price of Dh2.78.
The Dh871.2 million traded in Amlak’s shares are more than the total amount traded on DFM on Monday (Dh661 million). The second-most traded stock of the day, Arabtec, only saw a total of Dh148 million in trade.
