News Column

UAE markets consolidate as Arabtec confidence returns

June 17, 2014

Andy Staples Editor — UniversalCopy Desk



Dubai: The UAE's stock markets consolidated in Tuesday's trading, with Dubai Financial Market (DFM) holding its position above support levels as Arabtec gained following Monday's heavy losses.

The DFM index, which dipped as low as 4,430.91 within the first half-hour of trading and reached a peak of 4,565.04 shortly before 1pm, finished the day 0.6 per cent up at 4,495.24.

Arabtec rose by 4.2 per cent to Dh4.22, following trades with Dh947 million, just over half the Dubai Financial Market's total daily value of Dh1.87 billion, with 227.5 million shares changing hands.

"The market's reaction in the beginning wasn't really related to Iraq — mostly about the conflicting information over Arabtec," said Marwan Shurrab, fund manager and head of investment at Vision Investments & Holdings, referring to the erroneous report on Sunday that Aabar had reduced its holding in the property giant. "Today the market was a little more confident to a certain extent."

He added: "Today the stock traded around 227 million, which is an extremely high turnover. That helped support the rest of the market and create a consolidating situation across the board.

"Abu Dhabi was tracking Dubai. Turnover was still low — I think it's waiting for more confidence in the market, especially in Dubai."

Emaar, the second most-traded share by value, stayed static at Dh9.05. Union Properties, third by value, gained 1.38 per cent to Dh2.21.

Property proved Dubai's most productive sector, with the DFM real estate subindex gaining 1.57 per cent.

Drake & Scull International (DSI) gained 7.27 per cent to Dh1.77 following trades worth Dh107 million, on the back on news of a Dh65 million convertible.

"DSI has been one of the strong stocks in the market in the past month," said Shurrab. "While the market was losing steam it's been one of the few stocks to hold its ground."

Kuwait-based Al Madina, which made 8.26 per cent to 49.8 fils after trading worth Dh6.7 million.

The Abu Dhabi Securities Exchange index (ADX) lost 0.72 per cent, closing at 4,749.04. Its investment subindex gained 5.6 per cent thanks to a similar gain by Al Waha, which closed at Dh2.83, and banking and consumer staples lost 1.55 per cent and 1.53 per cent respectively.

National Bank of Abu Dhabi lost 6.35 per cent to close on Dh14.00.

The property sector, which accounted for 47 per cent of the ADX's total trade value of Dh491 million, made 0.43 per cent, with Aldar, the highest-traded share by value, static at Dh3.82 and Eshraq Properties, the third highest by value, gaining 4.2 per cent to close at Dh1.24.


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Source: Gulf News (United Arab Emirates)


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