Heavyweights like Etisalat and First Abu Dhabi Bank, Emaar Properties and Emirates NBD contributed to heavy losses on UAE indices on Tuesday.
The Abu Dhabi Securities Exchange general index closed 1.75 per cent lower at 4,990.77 even as the index managed to hold above the 50-day moving average of 4,955.
First Abu Dhabi Bank closed 0.32 per cent lower at Dh14.48. Etisalat closed 0.38 per cent lower at Dh16.92. Abu Dhabi Islamic Bank closed at Dh4.18, almost flat compared to the previous session. Abu Dhabi Commercial Bank closed flat at Dh8.19.
“Banks in Abu Dhabi have come a long way in 2018, promising from the capital’s financial sector as the UAE focuses on attracting FDI’s over a number of key sectors. Investors are advised however to reassess current PE ratios with a focus on a Dubai-Abu Dhabi comparison as despite positive performances of Abu Dhabi stocks, PE’s are growing and could prove less opportunistic in the near future,” Essam Kassabieh, Senior Financial Analyst at Menacorp said in a note.
The Dubai Financial Market general index closed 1.21 per cent lower at 2,750.14. “Traders may look to buy select outperforming banking stocks from lower support levels,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.
Emaar Properties closed at Dh4.79, down 1.64 per cent. Dubai Islamic Bank closed 0.19 per cent lower at Dh5.34. Emirates NBD closed more than 2 per cent lower at Dh7.10. Union Properties closed less than a per cent higher at Dh0.610.
Dubai Investment shares closed 1.4 per cent lower at Dh1.43. “Dubai Investments has gone radio silent with no comments being disclosed to investors after the stock hit new 52 week lows, investors may have been attentive to MSCI rebalances however the main issue is the several revaluations that have been applied to DIC’s assets that have made it challenging for investors to determine its book value which at this time seems much higher than its market price,” Kassabieh said.
The Tadawul index in Saudi Arabia closed 0.73 per cent lower at 7,504.94. The Muscat MSM 30 index closed flat at 4,453.3. The Qatar exchange index closed 1.25 per cent higher at 10,268.07. The Kuwait all share index closed 0.38 per cent lower at 5,080.49.