Dubai: The Dubai Financial Market (DFM) general index on Tuesday registered its sharpest fall since June, ending the session 2.05 per cent lower at 2,511.08 as traders resorted to active trades in Emirates NBD stock.
“Traders are using every recovery to book profit and sit on cash. The major reason is due to Emirates NBD,” said an analyst who did not wished to be named, on the day the index neared the 2.07 per cent decline seen on June 25.
Emirates NBD was down 4.6 per cent to Dh8.60 while Gulf Finance House (GFH) shed 6.48 per cent to end at Dh1.01. Dubai Islamic Bank (DIB) was down 0.39 per cent to end at Dh5.08.
Union Properties, which saw a bulk trade of 100 million shares in the early hours of trade, closed 1.21 per cent down at Dh0.409.
First Abu Dhabi Bank Securities (FABS) said traders had to spread their trades, which would allow them to shift from underperformers to relative outperformers in the volatile market.
FABS advised them to buy Dana Gas and sell Air Arabia.
“Dana Gas may touch Dh1.00/1.12 in the near term. Air Arabia may face renewed selling pressure, thus we expect a faster recovery on the spreads,” Shiv Prakash, senior analyst with FABS said in a note.
“The spread is currently trading at Dh0.08, hinting extension towards Dh0.10/0.25 in the near term,” Prakash said, adding that traders will benefit from the difference of price movements.
In the UAE capital, the Abu Dhabi Securities Exchange (ADX) general index slipped 0.76 per cent to close at 4,828.67.
First Abu Dhabi Bank (FAB) eased 1.29 per cent lower to Dh13.80 while etisalat fell 0.24 per cent to Dh16.98.
Elsewhere in the Gulf region, Saudi Arabia’s Tadawul All Share Index was down 0.31 per cent at 7,943.39.
The Qatar Exchange index slipped 0.07 per cent lower to 10,489.04 while the Muscat MSM 30 index fell 0.65 per cent to 4,379.49O.