DFM and Abu Dhabi record minor gains - Emirates24|7

DFM and Abu Dhabi record minor gains

(FILE)   

 
 

The UAE exchanges made minor gains on Thursday, with both markets remaining range bound.

 

The Dubai Financial Market (DFM) climbed 0.48 per cent to 5,832 points, while the Abu Dhabi Securities Market fared slightly better, adding 0.66 per cent to end the week on 4,853.

 

The Abu Dhabi’s turnover of Dh1.1 billion eclipsed Dubai’s Dh824 million as day traders continued to stay away from the latter.

Day traders typically account for up to 70 per cent of Dubai’s volumes, so their ongoing caution has left the DFM flat.

 

Sorouh was again Abu Dhabi’s champion, jumping 3.8 per cent to Dh11, which is a new record high.

 

Rival Aldar Properties added 0.45 per cent.

 

“The market is still moving sideways and there’s no clear indication of where it is heading,” said Krishna Murthy, Chief Executive of Al Rostamani financial services division.

 

“There’s little momentum locally as investors are troubled by the turmoil in international markets – sentiment, if not fundamentals, are correlated.”

 

The topsy-turvy trading pattern shows no sign of abating, although next week’s annual meetings should provoke speculation in certain stocks.

 

Emaar was Dubai’s most traded shares in cash terms, with Dh182m of shares changing hands and this demand helped it increase by 0.83 per cent to Dh12.05. National Cement stole the show, however, surging 4.76 per cent to Dh12.10.

 

Arabtec and Shuaa Capital have endured profit taking over the past two sessions following stellar early week gains. On Thursday the latter slipped 0.66 per cent to Dh7.44 as a late rally saved it from larger losses, while the former dropped 2.43 per cent to Dh12.

 

Meanwhile, the Abu Dhabi market is benefiting from a diverse range of listed companies, Murthy said, while investors can also build positions in select defensive stocks such as Abu Dhabi National Hotels and National Marine Dredging.

 

Murthy added: “These companies have very little downside and excellent potential. Defensive stocks such as these don’t see much trading, so are not attractive to day traders, but for medium and long-term players they offer an ideal way to diversify their holdings.”

 

Abu Dhabi National Hotels has leaped 61 per cent since the start of October, while National Marine has surged 68 per cent over the same period.

 

 

Agreement

 

The Dubai Financial Market has signed an agreement with the Karachi Stock Exchange to encourage companies to list on each other’s markets. It will provide opportunities for both the Dubai Financial Market and the Karachi Stock Exchange to share best practices.

 
 
 
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