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08 December 2023

DFM inches up on dreary trading

By Sreenivasa Rao Dasari

The Dubai Financial Market (DFM) witnessed another lacklustre session yesterday as it remained directionless in the absence of any buying support.

Heavyweights Emirates NBD, Commercial Bank of Dubai, Arab Insurance Group, NCC, Hits Telecom supported the index, while Emaar traded flat.

Owing to poor participation by market players the general index inched up by just 0.4 per cent to end the session at 1628.44 points, a gain of 6.45 points over the previous close of 1621.99.

Rumours overshadowed other factors in the market as it had already priced in the positive fourth quarter results. However, the recovery led by Emaar and other stocks halted the downward movement of the market. Investors are likely to remain in wait-and-watch mode until a clear picture about the rumours emerges.

"The market lacks direction as there's no reason to buy or sell," Robert McKinnon, Chief Investment Officer at ASAS Capital, told Emirates Business.

"I guess this will continue until there is clarity about Dubai World."

The finance/investment, insurance, transport indices closed with losses of less than one per cent, while the telecom index fell 1.04 per cent. The materials index, with a 4.99 per cent gain, rose the most as National Cement gained 4.99 per cent and closed at Dh3.58. Telecom stocks moved in both directions as du fell 1.03 per cent to close at Dh2.87 while Hits Telecom gained 3.31 per cent and closed at Dh1.56. Tabreed closed flat at Dh0.67.

The DFM recorded another session of low volumes with the bourse recording trading value of Dh169.59 millon as 97.32 million shares changed hands in 2,489 deals involving 31 stocks. "Very low volume and I would say it was poor participation across the board," said McKinnon. "Without liquidity and volume it's hard to interpret the market."

Emaar moved up marginally 0.66 per cent to close at Dh3.07 and registered trading worth Dh69.86m, accounting for 41.19 per cent of the total.

Other major contributors were Arabtec, DFM, DIB and Air Arabia with Dh21.73m, Dh19.25m, Dh17.48m and Dh6.38m respectively. The session's top gainers – Arab Insurance Group, NCC, Commercial Bank of Dubai, Hits Telecom and Emirates NBD – rose by between 2.37 per cent and 7.89 per cent. Arab Insurance Group gained the most as it rose 7.89 per cent and closed at Dh2.05. Commercial Bank of Dubai moved up 3.47 per cent to close at Dh3.88, and Emirates NBD was up 2.37 per cent at Dh2.59. The day's losers were Al Salam Bank Bahrain, Aman, Global, Shuaa Capital, Ekttitab. Al Salam Bank Bahrain – the top gainer on Tuesday following t positive fourth quarter numbers – fell 5.26 per cent, the day's biggest decline, to close at Dh0.90.

DFM suspended trading in Air Arabia stock from 11am yesterday following its board meeting and trading will resume after the results are disclosed. Air Arabia shares eased 1.05 per cent and closed at Dh0.94.

The market opened positively at 1633.86 and moved downwards in the first half of session to touch 1619.69 – the day's low.

Arig and CBD among top gainers

Deyaar, Arab Insurance Group (Arig), Shuaa Capital and Commercial Bank of Dubai (CBD) moved in different directions yesterday after disclosing their fourth quarter results.

Dubai Financial Market resumed trading in Deyaar stock as the 2009 figures were announced.

Deyaar recorded a 95.4 per cent drop in net profit at Dh30 million from Dh654.7m the previous year.

The shares closed flat at Dh0.50 and the stock recorded Dh2.94m turnover and volume of six million shares.

Arig stock topped the list of gainers at the bourse as its shares rose 7.89 per cent to close at Dh2.05.

Commercial Bank of Dubai has announced a net profit of Dh803m for the year and was up by 4.1 per cent as compared to Dh771m for 2008. The Dubai-based bank added 3.47 per cent and closed at Dh3.88.

Shuaa Capital, which reported a loss for the year of Dhs529.8m in net profit, fell 2.5 per cent to close at Dh1.17.

Emirates NBD, Hits Telecom and NCC were other top gainers.

DSI's TP slashed

Deutsche Bank has slashed its target price for Drake & Scull International (DSI) to Dh1.1 from Dh1.3 while keeping its buy rating for the stock.

"We continue to see DSI as an attractive equity story, a sound balance sheet, diversification well under way and an attractive valuation," said the bank. "The 4Q profit miss and faster-than-expected decline in Dubai construction led us to cut our estimates by 10 per cent."

DSI closed flat at Dh0.85 and the stock recorded turnover of Dh4.36m.


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