Dubai: The Dubai bourse’s main index fell 1.27 per cent on Sunday, driven by declines in heavyweight Emaar whose share price dropped 3.2 per cent.
The Dubai Financial Market (DFM) index ended the day at 2,774.09, with lower trade values than usual, of just Dh184.8 million. Most stocks in the market also ended in the red, with the DFM index now 17.7 per cent lower year-to-date.
Tariq Qaqish, managing director of Menacorp’s asset management unit, said the weakness in Emaar shares was a concern, considering the company’s weight on the Dubai index.
“We haven’t heard any fundamental news that would affect the stock. We do understand the real estate market is slowing down, but Emaar has managed to sell most of their product,” he said.
“I think what is pressuring Emaar more than other stocks is that foreigners are selling the liquid stocks because of the weakness in emerging markets.”
Elsewhere on DFM, Drake and Scull International (DSI) shed 0.49 per cent after the company’s share price plunged 10 per cent in the last trade session as it said it will hold a meeting with shareholders to decide on whether to dissolve the business or not.
On Sunday, however, private equity firm Tabarak, which is a majority shareholder of DSI, affirmed its commitment to the construction company. A statement to the Dubai bourse said that Tabarak Investment increased its ownership in DSI to 13.73 per cent of paid up capital from 13.26 per cent.
“I’m sure there will be support from the strategic investor (Tabarak) to try to stabilise the stock. However, the announcement from Tabarak today was not really enough to make investors believe that there will be strong support for the stock,” Qaqish said.
In Abu Dhabi where the main bourse index was heading in the opposite direction to Dubai’s — the Abu Dhabi Securities Exchange (ADX) general index rose 0.63 per cent.
The index ended at 4,965.74 as it continued to flirt with the closely-watched 5,000 level. The ADX index is about 13 per cent higher year-to-date.
Among the most actively traded stocks on Sunday were banking stocks, namely Union National Bank and Abu Dhabi Commercial Bank as well as heavyweight Etisalat, which all increased. UNB inched up 0.59 per cent, as ADCB and Etisalat gained 1.65 per cent and 1.38 per cent respectively.
