News Column

DFM index rises 1.47%, ADX gains 0.38%

May 12, 2014

Sarah Diaa Staff Reporter



Abu Dhabi:The Dubai Financial Market (DFM) general index rose 1.47 per cent on Monday to end the day at 5,214.25, while the Abu Dhabi Securities Exchange (ADX) index gained 0.38 per cent to reach 5,007.14.

DFM began the day's play with a plunge that saw the index drop from 5,138.86 to 5,019.73 in only a few minutes. However, that was followed by gradual increases throughout the day to close at 5,214.25.

Trade on ADX was similar, with the index dropping at the start of trade to around 4,940, and then gradually rising throughout the rest of the day.

Arabtec remained the main powerhouse for DFM, with shares worth more than Dh904 million. After suffering a 9.19 per cent drop in value on Sunday, share price for the real estate developer regained strength, climbing 7.83 per cent on Monday to end at Dh6.61. The change in value marked the largest one of the day on DFM.

Union Properties was also among the leading players on DFM, as it rose 4.03 per cent, marking the second largest change in the market to end the day at a share price of Dh2.58.

Mohammad Al Hammadi, an economic researcher and independent investor, said the gains in the stock market are a result of correction from Sunday's drop.

"Whenever there's a steep drop in the market, it is usually followed by a noticeable rise, which explains the growth in DFM today. Everyone in the market had their eyes on the stock that dropped the most, which was Arabtec, and investors were buying it," he said.

Al Hammadi added, "Most investors are focused on certain stocks like the blue chips in the market, and that's unsettling. For example, almost all investors focused on Arabtec today, which is a risky trend."

Discussing projections, he expected stability or a slight decline in the market over the next couple of days.

In Dubai, Emaar inclined 0.50 per cent to close at a share price of Dh10, and Dubai Islamic Bank grew 1.53 per cent, but Drake & Scull International dropped 2.29 per cent.

In the capital, Aldar Properties registered the greatest change in volume with a 3.87 per cent gain, while Eshraq Properties also rose 3.26 per cent, and Dana Gas climbed 3.53 per cent.

Of the 36 companies traded on ADX, 18 advanced, 14 declined, and four remained flat. Of the 32 stocks traded on DFM, 17 went up, 13 went down, and two remained unchanged.


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Source: Gulf News (United Arab Emirates)


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