News
Cautious investors push DFM volumes down
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(DENNIS B MALLARI) | |
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Trading volume halved on the Dubai Financial Market on Wednesday as investors adopted a more cautious approach. The DFM general index extended its decline by closing 1.02 per cent lower at 5404.68 points, with volumes falling to 137.7 million shares from 264.6 million on Wednesday. Shares of Emaar Properties fell by 2.17 per cent to end at Dh11.25. The scrip touched an intra-day low of Dh11.20, and more than 18 million shares of Dh206 million exchanged hands. “The short-term investors are still confused about the market, but the medium to long-term investors are still bullish about the market,” Al Futtaim HC Securities dealing room manager Sherif Abdul Khalek said. The counters of Deyaar Development and Union Properties closed down by 1.27 per cent and 1.34 per cent at Dh2.33 and Dh4.40, respectively. “There isn’t much news that is not driving it up, but fundamentally they are strong companies,” said a senior financial analyst. The Sharjah-based low-cost carrier Air Arabia failed to take off for the second consecutive day as the share fell 0.53 per cent to end at Dh1.86. The counter saw more than 28 million shares of Dh52m being traded in 687 deals. The airline, which is one of the most successful in the Middle East, said it will purchase two Airbus A320 aircraft, thus expanding its fleet size to 13, including 11 leased and two owned aircraft. Dubai Financial Market Company declined by 3.12 per cent to Dh5.27, Shuaa Capital slipped 3.68 per cent to Dh7.31, while National Cement Company dipped 4.71 per cent to end at Dh15.15. There was good demand for Al Salam Bank as it rallied to close in positive territory. More than 9.8 million shares of Dh29m were traded against on Wednesday’s 615,750 shares worth Dh1.67m. The Abu Dhabi Securities Market index fell marginally by 0.24 per cent to end at 4665.25 points. More than 784 million shares worth Dh145m changed hands, with 18 companies declining and 16 advancing. The real estate index witnessed the highest fall of 2.88 per cent. Sorouh closed lower at Dh8.61, down 4.97 per cent. The real estate developer on Wednesday announced signing a deal with Metro-Goldwyn-Mayer Studios and Jordanian animation shingle Rubicon to create an entertainment destination within its real estate portfolio. Etisalat, which closed at Dh24.65 on Wednesday, lost 0.61 per cent to finish the day at Dh24.50, with 612,005 shares being traded.
Sorouh founder members need to hold on to their shares until the third or fourth quarter if they want to make good gains, a financial expert said. The company’s founder members are allowed to sell their shares from March 30, as the lock-in period of two years expires.
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