UAE stock markets in selling mode

Dubai, Abu Dhabi: UAE markets were down for a second day on Tuesday, with Dubai dropping 5.6 per cent and Abu Dhabi 3.57 per cent.

The pace of decline on the ADX slowed on Tuesday after President His Highness Shaikh Khalifa Bin Zayed Al Nahyan said the UAE economy is in good condition and will not slip due to the global financial crisis.

Institutional investors bought stocks on the lows which stemmed the market decline. The market also drew comfort from the news Dubai World had begun talks with banks to restructure $26 billion of debt, including $3.5 billion owed by property unit Nakheel.

"There were buyers today in the market and fresh money came in. The Abu Dhabi general index gained 70 points from an intra-day low of 2,501," Mousa Haddad, Head Trader with National Bank of Abu Dhabi Asset Management, told Gulf News.

"The UAE markets are likely to rebound in the days ahead and we could see some good volumes from the beginning of next week," he added. "In Abu Dhabi, the selling pressure would substantially dissipate by Sunday.

"We would be looking at stocks like Aldar, Sorouh and Dana Gas for entry opportunities," said Fahd Iqbal, Strategist at EFG-Hermes.

Yesterday, 195.16 million shares cumulatively worth Dh382.35 million traded on the ADX. Of the 37 companies traded, only 8 rose and 29 fell.

National Bank of Fujairah was the day's main gainer on ADX, its shares rising 9.90 per cent to close at Dh5.66.

Together, the Dubai and Abu Dhabi markets lost Dh16.80 billion capitalisation. ADX was dragged down by real estate, construction, banking, energy and consumer stocks. Only telecommunication was spared.

DFM ended minus 5.61 per cent at 1831.48 after going down to almost seven per cent intra-day. Aramex and Air Arabia ended in the green. However, Emaar, Shuaa Capital and Arabtec went out of the session with more than nine per cent losses.