Dubai index gains as UAE stocks begin week on a steady note

Abu Dhabi: The UAE stocks began the week steadily as both markets moved within narrow band.

In Dubai, the benchmark index gained 0.88 per cent to close at 436.76 points, while Abu Dhabi's general index declined marginally by 0.13 per cent to close at 3539.56 points.

"Dubai market seems to be getting back to its steady gains, where selling was the norm at the beginning of the session, yet the market recovered quickly," commented Ahmad Abdel Rahman, an analyst at Amanah Capital.

"It is expected to open tomorrow on positive grounds, as Emaar's last price was Dh14.30, well above the price at the close."

Emaar Properties accounted for about 63 per cent of the value of traded shares in Dubai, advancing by 1.07 per cent, to close at Dh14.15 and gain Dh0.9 billion in market capitalisation, with many analysts giving the share a positive outlook as the third quarter results approach.

Gainers and losers

Shares of the company's Economic City of Saudi Arabia, in which it holds a 50 per cent stake, are to start trading on October 7, in the Saudi stock market.

Arabtec also gained 1.22 per cent to close at Dh4.99. The company announced yesterday that it had won a Dh278.5 million contract from Dubai's Civil Aviation Department to establish the cargo building at Dubai World Central.

In Abu Dhabi, the market ended the session almost flat, with Abu Dhabi Islamic Bank accounting for Dh50.3 million worth of transactions out of the total value of traded shares of Dh118.4 million, representing 42 per cent.

"Etisalat and the National Bank of Abu Dhabi (NBAD) were the shares responsible for the market's decline," explained Abdul Rahman.

Etisalat lost Dh0.9 billion of its market capitalisation, or 1.03 per cent of its price to close at Dh19.25 with the news of proposed sanctions by the Telecom Regulatory Authority (TRA).

"Abu Dhabi market also recovered from the morning losses, when the index was 0.4 per cent lower, to end the session at 0.13 per cent lower, which indicates that both markets are standing on healthy grounds," added Abdul Rahman.