Selling was witnessed in other Dubai stocks on Monday as traders made a beeline to trade in Arabtec rights.
The Dubai Financial Market General Index closed 1.1 per cent lower at 3,377.82, ignoring positive leads from global markets. Traders were seen exiting other shares like Gulf Finance House, Emaar Properties.
“The unjustified trading activity in Arabtec rights impacted the market negatively. The whole market turned into red once the rights issue started to gain steam,” said Marwan Shurrab, head of high net worth and retail equity brokerage, Al Ramz.
“Today’s activity has negatively impacted the market sentiment. We saw selling pressure across the board,” he added.
Emaar Properties closed 0.54 per cent lower at Dh7.42. Emirates NBD closed more than 3.5 per cent lower at Dh8.05. Gulf Finance House closed more than 2 per cent lower at Dh2.23. Arabtec rights jumped more than 2000 per cent. About Dh110 million worth of trading activity was witnessed in Arabtec rights, out of Dh482 million in total.
The Abu Dhabi Securities Exchange general index closed 0.63 per cent lower at 4,564.31.
“A break over the 4,620 resistance may ignite next leg up towards the 4,710 barrier. Traders may look to hold banking stocks while trailing the stop loss higher to 4,550 level,” Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities said in a note.
Aldar Properties closed 0.44 per cent lower at Dh2.28, while First Abu Dhabi Bank closed less than 1 per cent lower at Dh11.20. Etisalat closed 0.28 per cent lower at Dh11.20. Elsewhere in the Gulf, Saudi’s Tadawul index closed 0.57 per cent higher at 6,891.99. The Qatar exchange index closed 0.56 per cent higher at 10,118.13. The Muscat MSM 30 index closed 0.07 per cent lower at 5,416.47. The Bahrain bourse index closed 0.1 per cent higher at 1,311.98.