News Column

DFM gains 1.31% as blue chips report Q2 results

August 4, 2014

Sarah Diaa Staff Reporter

Abu Dhabi: The Dubai Financial Market (DFM) index climbed 1.31 per cent on Monday to reach 4,885.22 as market blue chips continued to announce positive financial results for the second quarter of 2014.

The Abu Dhabi Securities Exchange (ADX) general index, however, continued to fall, ending the day with a 0.17 per cent decline to reach 4,984.27.

In Dubai, Emaar topped the market in terms of value traded, as the real estate developer surpassed Arabtec, and accounted for 34 per cent of the total trade value on DFM. Share prices went up 3.05 per cent to reach Dh10.15 on the back of the announcement of net profits worth Dh868 million for Q2 2014 a 29 per cent increase over the same time last year.

Meanwhile, Arabtec continued to incline slowly as share prices gained 0.47 per cent to reach Dh4.3.

Other powerhouses in Dubai were also in the green as Dubai Investments Co. climbed 1.7 per cent, Dubai Islamic Bank rose 1.29 per cent, and Union Properties went up 0.93 per cent. However, Gulf Finance House fell 0.56 per cent, but topped trade in terms of volume, accounting for 21 per cent of shares traded.

In Abu Dhabi, Methaq Takaful Insurance Co. led the gainers' list with a 4.76 per cent change, followed by Eshraq Properties with 2.96 per cent, Al Khazna Insurance Co. with 2.78 per cent, and Ras Al Khaimah Cement Co. with 2.40 per cent.

Mohammad Al Hammadi, an economic researcher and independent investor, attributed weak market activity to caution by investors.

"I think investors have been trying to remain cautious since the market crash in June, so we are not seeing a lot of aggressive trade. There is also less liquidity in the market because people are waiting to see positive financial results rather than rely on rumours in the market," he said.

He expected the DFM index to end the week with slight gains.

Discussing ADX, Al Hammadi was more apprehensive, saying that the market is experiencing a period of very low volumes.

"I think the best thing for ADX now would be to have a merge with the DFM, because [ADX] is stale, and some of the listed companies end the day without even being traded," he said.

Of the 30 stocks traded on DFM, 19 went up, eight went down, and three remained unchanged. Of the 31 stocks traded on ADX, 15 advanced, nine declined, and seven remained flat.

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Source: Gulf News (United Arab Emirates)

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