Dubai Financial Market index drops

Dubai: The Dubai Financial Market (DFM) index fell 2.49 per cent on Sunday due to profit booking.

The decline was led by real estate major Emaar, whose shares fell 4.75 per cent to Dh4.61.

The market remained volatile throughout the day, dragging the DFM index down to close at 2,292.33.

The decline on the US and European bourses on Friday contributed to the negative sentiment which prevailed during the day.

More than 341.99 million shares worth Dh865.85 million were traded. Of the 29 companies traded, 27 fell and only two rose.

Telecommunication services provider du was the biggest gainer, its shares rising 4.99 per cent to Dh3.58.

Gulf Finance House was the biggest loser, falling 9.95 per cent to Dh1.99.

Shares of Emaar were the most actively traded both in terms of value and volume.

Analysts say looking ahead the third quarter earnings of blue-chip companies will set the direction for the UAE markets. The shares have attractive valuations, they say.

According to Rami Sidani of Schroder Investment Management, the general view among investors is that the worst of the global recession has passed and in the days ahead there are likely to be stronger foreign capital flows into the UAE due to an improvement in risk appetite worldwide.

The Abu Dhabi Securities Exchange (ADX) general index slipped into negative territory on Sunday as the local market tracked Friday's development on the US and European bourses that turned negative on third quarter earnings reports of Bank of America and GE.

The decline on the market, which experienced a wait and watch strategy by buyers and sellers, was only marginal, although the number of shares traded fell.

The general index fell 1.02 per cent to close at 3,206.62. The fall was led by real estate, banking and energy stocks.

As many as 100.68 million shares worth Dh233.06 million were traded.

Of the 34 companies traded, only 8 rose and 26 declined. Oman & Emirates Inv. Holding Co. was the main gainer, its shares rising 9.26 per cent to close at Dh1.75.

Shares of Abu Dhabi National Takaful Co. fell the most, down 10 per cent to Dh5.40.

Real estate company Sorouh's shares were the most actively traded by value and RAK Properties' shares were the most active traded by volume.

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