Dubai
Dubai’s main equity index was weighed down on Tuesday by slight dips in the share prices of blue chips Emaar and Dubai Islamic Bank, leading the index to close 0.9 per cent lower.
The Dubai Financial Market (DFM) general index ended at 3,034.27, as the majority of traded stocks closed in the red.
Emaar, which was the most actively traded stock on DFM by value, fell 1.61 per cent to reach Dh5.49, as Dubai Islamic Bank slid 0.73 per cent to Dh5.42. GFH and Gulf Navigation, which were also among the most actively traded, each ended flat.
“Emaar is stable at these sorts of levels, but it is extremely attractive in terms of valuations. Despite the weakness that we’re seeing overall in the share price, I think it’s reached a level which becomes, on a medium term basis, extremely attractive,” said Saleem Khokhar, head of equities at First Abu Dhabi Bank’s asset management group. He pointed that prices may still drop some more.
Emaar’s share prices are currently at their lowest levels since January 2016, with a year-to-date return of negative 23.6 per cent, according to Gulf News calculations.
On DFM, traded values totalled Dh241.6 million on Tuesday. While still quite low, the value is an improvement over the last week when trade values tumbled to Dh88 million, indicating continued sluggishness.
FAB’s Khokhar said that many investors are still waiting and watching the international scene to see developments in terms of global trade given the recent trade tensions between the US and China.
The Abu Dhabi Securities Exchange (ADX) index was almost flat, dipping 0.09 per cent to reach 4,689.20 as trade concentrated on Taqa, First Abu Dhabi Bank, Aldar Properties, Dana Gas, and Abu Dhabi Commercial Bank.
Discussing the outlook, Khokhar said he expected markets to remain rangebound over the next few weeks especially heading into Ramadan and the summer season when liquidity tends to dry out.
“It’s going to be a soft market in terms of liquidity until after summer,” he said.
