News Column

UAE bourses start month with a drop

August 3, 2014

Sarah Diaa Staff Reporter

Abu Dhabi: The UAE stock markets started the first trading session of the month with a drop as the Dubai Financial Market (DFM) index fell 0.23 per cent on Sunday to reach 4,822.25. The Abu Dhabi Securities Exchange (ADX) general index also declined 1.24 per cent to reach 4,992.52.

Volumes on DFM started to rise again, however, after the last few sessions saw under Dh1 billion traded every day. On Sunday, the trade value reached Dh1.13 billion.

Shares for construction giant, Arabtec, went up 0.71 per cent to reach Dh4.28. Share prices for the Dubai powerhouse climbed a total of 53.25 per cent in July, accounting for a correction following the market crash in June.

Meanwhile, Salam Bahrain went up 6.37 per cent, Emaar gained 0.82 per cent, and Gulf Finance House rose 0.56 per cent. Union Properties fell 0.93 per cent, though, and Dubai Islamic Bank remained flat.

In the capital, Abu Dhabi Aviation led the gainers' list with a 6.01 per cent change, followed by Abu Dhabi Ship Building Co. with 2.62 per cent, Ras Al Khaimah Ceramic Co. with 1.85 per cent, and Gulf Cement Co with 1.48 per cent.

Sebastien Henin, head of asset management at The National Investor, commented on market performance saying that it has been trading sideways lately due to the lack of investors who are mostly on holiday.

He added, "If you look at western markets, they were very weak on Thursday and Friday. Oil prices also went down almost 10 per cent in a few weeks. On top of that, look at what happened in Argentina, which is now in default. We still have geopolitical tension in emerging markets, so all that is contributing to market performance."

Given such factors, Henin expected profit-taking activity over the coming weeks.

Despite Arabtec's overall positive performance in July, Henin said there are still some question marks surrounding the company in terms of shareholding, and bringing a new CEO.

As for ADX, he said, "The drop is due to the fact that you have some big blue chips that went down today (Sunday) like Aldar Properties, and ADCB, which [performed] well last week so now we have noticed profit-taking. There's also a lack of liquidity in the market."

Of the 30 stocks traded on DFM, 17 went down, 11 went up, and two remained unchanged. Of the 29 stocks traded on ADX, 19 declined, five advanced, and five remained flat.

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Source: Gulf News (United Arab Emirates)

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