Dubai stocks down as Abu Dhabi gains

Dubai: The UAE markets saw mixed fortunes for the second time this week with the Dubai Financial Market (DFM) index falling 3.58 per cent after a strong rally the day before after the Dubai government issued bonds worth $20 billion.

The Abu Dhabi Securities Market (ADX) saw a fifth-session rally of 1.74 per cent, with the index closing at 2,338.56.

Energy and telecommunications stocks led the advance, with Abu Dhabi National Energy Company, also known as Taqa, jumping 8.87 per cent to Dh1.35 and etisalat surging 7.28 per cent to Dh11.05.

The telecom giant yesterday announced dividends to 35 per cent for the second half of 2008, at an increase of 60 per cent over dividends for the first half of the year.

The DFM index closed at 1n589.81 and among the losers were Dubai Financial Market, down 9.52 per cent to Dh1.33; Arabtec declining 9.74 per cent to Dh1.76 and Emaar Properties and Union Properties, slipping 3.23 per cent and 8.24 per cent to Dh2.10 and Dh0.78.

Mathew Wakeman, managing director, cash and equity linked trading, EFG-Hermes, said that the DFM's sharp fall was not a surprise as the rise was similar.

"Any plans focused directly at real estate in particular will send the market sharply higher regardless of the global market backdrop," Wakeman said

The UAE market lost Dh1.70 billion in capitalisation, falling to Dh354.26 billion, according to the Emirates Securities Market Report.

Shiv Prakash, equity investment analyst, technical at MAC Securities said that the DFM experienced significant profit booking but the market undercurrents remain strong.

Wakeman expects that the market would resume its climb today and would sustain it into the weekend, as investors would be waiting for further announcements.

"Retail investor focus looks set to remain on Dubai for the near future given the speculative rumours that are dictating direction currently," he said.