Dubai: About 80-90 per cent of the volume seen on UAE bourse was seen in auction trade, traders said on Thursday as FTSE lowered the weightage of UAE stocks along with Egyptian names on the emerging market gauge in favour of Kuwaiti names.
The Dubai Financial Market general index fell, extending losses for another session, ignoring a rate hike from the US Federal Reserve and the local central bank. The DFM index closed 1.35 per cent lower at 2,509.81.
The FTSE emerging market index lowered the weightage of Dubai Islamic Bank (DIB) and Dubai Investments, taking the total to 26 stocks listed on the Dubai Financial Market and the Abu Dhabi Securities Exchange,
DIB closed 2.53 per cent lower at Dh5.01. Dubai Investments closed 0.79 per cent lower at Dh1.26. Union Properties closed 3.17 per cent lower at Dh0.397. Total traded value was placed at Dh194 million.
Going ahead, traders may focus again on the rate hikes. “There is a buffer as banks benefit from the rates especially closer to dividend season during which investors are expected to move in on short term
positions seeking high yields,” said Issam Kassabieh, senior financial analyst at Menacorp.
The Abu Dhabi Securities Exchange general index closed 0.08 per cent lower at 4,855.94. Dana Gas closed more than 5 per cent lower at Dh0.87. Abu Dhabi Commercial Bank closed 0.73 per cent lower at Dh8.19.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.42 per cent lower at 7,748.87. Saudi Basic Industries Corp. closed 1.16 per cent lower at 118.60 Saudi riyals. Al Rajhi Bank closed 1.28 per cent lower at 84.90 riyals. The all share Kuwait index closed 0.84 per cent lower at 5,096.56.