The Dubai Financial Market (DFM) index fell 2.29 per cent yesterday as investors booked profits to exit the rally at a higher level and watch the market movement from the sidelines before taking fresh positions.
The DFM index fell to 1,717.97 from 1,758.17 on Tuesday as investors offloaded stocks. The day was, however, robust for transactions with the value of shares traded exceeding Dh1 billion for the first time in several trading sessions.
Heavily-traded companies such as Emaar, Arabtec, Dubai Islamic Bank and Union Properties declined, dragging the index lower. As many as 681.76 million shares worth Dh1.19 billion were traded, which was substantially higher than Tuesday.
Analysts say the Dubai market has the strength to reach 1,950 in the days ahead, with Dubai World's debt restructuring talks with its lenders expected shortly. They say the outcome of the talks will determine the next course of the Dubai market, which, until then, will remain range-bound with a downside bias.
About 140.79 million shares of Emaar worth Dh530.29 million were traded. They fell 4.47 per cent to close at Dh3.63.
The top gainer was Dartakaful, rising 1.52 per cent to close at Dh1.34. Global Investment House was the main loser, falling 8.70 per cent to close at Dh1.26.
— Himendra Mohan Kumar, Staff Reporter
The Abu Dhabi Securities Exchange (ADX) general index fell fractionally again yesterday on profit-taking by investors, though the value and volume of transactions rose compared to Tuesday, indicating that the market may be preparing for its next rally.
The ADX general index closed 0.41 per cent lower at 2,849.28, the decline being led by consumer, telecommunication, and industrial stocks.
Analysts say the shares are currently overbought and it's going through a period of correction. However, they say the index reaching around 2,760 will spur buying interest from institutional and short-term investors on attractive share valuations. The market has a greater resilience compared to the Dubai market due to some of the country's top banks being listed on the ADX, backed by the government of Abu Dhabi.
About 169.54 million shares worth Dh376.56 million were traded. Of the 33 companies traded, 12 rose, 18 fell and 3 remained unchanged.
Thes top gainer was Ras Al Khaimah Poultry & Feeding Co., closing 9.72 per cent higher at Dh2.37. Commercial Bank International was the top loser, falling 7.14 per cent to Dh1.43.
Aldar Properties, Abu Dhabi's largest real estate developer by market capitalisation, was the most traded in terms of value and volume.
