DFM index down on the back of low volumes

Volumes failed to impress once again on the Dubai Financial Market, as the general index closed down by 0.12 per cent at 5650.38 points yesterday.

More than 192 million shares changed hands, with the total value crossing Dh869 million in 5,344 deals. Of the 28 shares traded, 11 advanced and 14 declined.

"There is no news to prop up the market. And definitely there is a lack of local and foreign institutional investors in the market," Ganesh Mani, research analyst at Waves Investments, told Emirates Business.

Air Arabia scrip closed higher at Dh1.98, as more than 14.7 million shares of Dh29m were traded in 259 deals.

Last week, Shuaa Capital said "burgeoning competition and cost inflation may have started to erode Air Arabia's first mover advantage in the region, partially reflected by lower margins".

Amlak Finance lost 0.62 per cent to end at Dh4.78, as the scrip reached an intra-day high of Dh4.86. More than 10.3 million shares of Dh49.9m were traded.

The Islamic mortgage company has renewed its application to become a bank, for which it first applied more than two years ago. Moreover, it plans to sell Islamic bonds in the third and fourth quarters of this year to fund expansion.

Tamweel declined 1.18 per cent to end at Dh7.53, as 2.88 million shares of Dh21.9m were exchanged in 149 deals.

The company is projecting a growth in profits by 70 to 80 per cent this year compared to the previous year. "The market has been growing rapidly. With developments getting closer to completion, the mortgage conversion ratio has started rising rapidly," Wasim Saifi, chief executive officer, Tamweel, had told Emirate Business.

Shuaa Capital fell 0.24 per cent to close at Dh8.17, as 360,630 shares of Dh2.94m were traded. The investment bank is helping six companies with fundraising or merger-and-acquisition advice as it seeks to expand, Shuaa Chief Executive Officer Iyad Duwaji has told Bloomberg.

Shares of Union Properties rose 0.64 per cent to finish at Dh4.71, as more than 9.3 million shares of Dh44.6m were traded. Emaar counter closed high at Dh11.45, up 0.43 per cent, as only 13.6 million shares worth Dh155m changed hands.

Meanwhile, Abu Dhabi Securities Exchange (ADX) declined for the second consecutive day. The index fell 0.59 per cent to end at 4936.36 points.

Aldar Properties fell 1.72 per cent to Dh11.40, RAK Properties declined 3.08 per cent to Dh2.20, while Arkan closed lower by 1.39 per cent to end at Dh5.66.

Shares of Gulf Cement jumped 0.65 per cent to close at Dh6.23, while RAK Cement rose 4.55 per cent to end the day at Dh2.30.

The Ministry of Economy and the Cement Producers Group have recently signed a memorandum of understanding to implement the necessary measures to ensure the availability of cement in the local market at reasonable prices.

Overall, 558 million shares of Dh2.6 billion were traded in 10,060 deals, as 16 companies advanced and 31 declined.