Dubai: Dubai and Abu Dhabi indices trade in opposite directions as local investors bought shares which are not part of the MSCI index.
Dubai's benchmark index — DFM — rose by 1.88 per cent to 5,151.21 points on Monday while Abu Dhabi's ADX index fell by 0.47 per cent to 5,133.54
"Many of the local investors in Dubai, who were able to book profits on Thursday and Sunday, decided to go for the shares of the companies which are not part of the MSCI index," Mohammad Ali Yasin, managing director of NBAD Securities in Abu Dhabi, told Gulf News
Among the shares listed on MSCI index, DP World rose 4.70 per cent while Emaar rose by 3.48 per cent. Abu Dhabi Commercial Bank was up 1.41 per cent. Among the daily losers were First Gulf Bank, which fell 1.70 per cent, National bank of Abu Dhabi, which fell by 1.55 per cent, and Aldar Properties, which was down by 0.23 per cent.
"Investors are going after shares not part of MSCI index as they believe they will have more control of the trading," Yasin said.
He said markets in the UAE are trying to find a way of trading with the introduction of MSCI Index.
Among the gainers in Dubai, Union Properties rose 6.73 per cent to Dh2.38, followed by Dubai Investment by 5.29 per cent to Dh3.58.
Al Salam Bank - Bahrain fell by 1.30 per cent to Dh2.28, followed by Gulf Navigation by 0.96 per cent to Dh0.310 and Emirates NBD by 0.21 per cent to Dh9.48.
Of the 30 companies traded, 20 rose, 4 declined and six closed unchanged.
About 809.18 million shares worth Dh2.42 billion were traded.
Emaar was the active value leader while Union Properties was the active volume leader.
In Abu Dhabi, Al Khazna Insurance rose 15 per cent to Dh0.69, followed by National Marine Dredging by 14.71 per cent to Dh8.03 and Umm Al Quwain Cement Industries by 14.62 per cent to Dh1.49.
Among the losers, Gulf Medical Projects Company fell by 9.65 per cent to Dh2.34, followed by Watania by 5.71 per cent to Dh0.99 and Ooredoo by 4.35 per cent to Dh154.
Of the 38 companies traded, 12 rose, 20 declined and six closed unchanged.
About 262.61 million shares worth Dh713.02 million were traded.
Aldar was the active value leader while Eshraq was the active volume leader.
Vijay Harpalani, assistant fund manager at Al Mal Capital, said the UAE markets are likely to be volatile in the short-term. However, the fundamental view hasn't changed. As first-quarter corporate earnings were way ahead of street estimates, we do expect analysts to revise their numbers upwards.