Dubai:Shares of Islamic Arab Insurance (Salama Insurance) tumbled 7 per cent on Tuesday along with its other peers even as mild activity continued in the rest of the market during Ramadan.
Salama Insurance declined 7.33 per cent to end at Dh0.556, after rising as much as Dh0.639. The stock gained 10 per cent on Sunday and Monday. Traded volume in Salama Insurance jumped to 134 million in the past three sessions compared to last week’s volume of 26 million shares.
“The rally was a speculative one based on a rumour. We refrain our clients from trading on rumours and instead ask them to look at fundamentals,” said an analyst who did not wish to be named.
Salama Insurance denied reports about a merger with any firm, but also said that they look at “opportunities to support its expansion as part of its strategy and the current market situation,” keeping the merger possibility alive in the short to medium term.
Dar Al Takaful closed 5.6 per cent lower at Dh0.566. Aman Insurance closed at Dh0.50, down 3 per cent. In other stocks, DP World closed 0.3 per cent lower at $19.15. Real estate stocks such as Damac Properties, Aldar Properties witnessed a fall.
“The trend in Damac remains bearish and may head lower towards the target zone at Dh1.10/0.98 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said. FABS had a sell on the stock at Dh1.45/1.35 in March. Damac Properties closed 0.87 per cent lower at Dh1.14. Emaar Development closed 1.93 per cent lower at Dh3.55. The Dubai Financial Market general index closed 0.28 per cent lower at 2,725.87.
The Dubai index has gained 7.75 per cent in the year so far, compared to a 35 per cent fall since July 2018.
“Locally, many of the large caps have done well and also since investors have got their annual dividends, some would certainly want to take money off the table. Overall expect activity to be lower than the prior months,” Vrajesh Bhandari, senior analyst with Al Mal Capital said.
Traded value on Tuesday fell to Dh130 million, compared to a 30-day average of Dh138 million. The Abu Dhabi Securities Exchange general index closed 0.42 per cent lower at 5,124.48. Abu Dhabi Commercial Bank ended 3.70 per cent lower at Dh9.10. First Abu Dhabi Bank closed 0.26 per cent lower at Dh15.60. Elsewhere in the Gulf, Saudi Tadawul index closed 1.07 per cent lower at 8,946.06.
