Low turnover and fears push shares downward

UAE stock markets ended the week with mixed results amid continuing uncertainty and an acute shortage of liquidity.

Dubai Financial Market lost 17.51 points, or 1.03 per cent, to close at 1,681.92 in a session marked by severe fluctuations.

Meanwhile, Abu Dhabi Securities Exchange managed to end a four-day losing streak by adding 8.31 points, or 0.32 per cent, to close at 2,589.07.

The DFM was dominated by moves in the price of Emaar Properties which ranged between Dh2.37 and Dh2.43 throughout trading and closed down.

The gradual decline in turnover that had been seen since the beginning of the week continued with 181.6 million shares worth Dh265.5 million changed hands during the session.

Concentration of transactions continued with DFM stocks, Emaar, DSI, Deyaar and Arabtec accounting for almost 85 per cent of turnover. DFM was the leading active stock, attracting 30 per cent of the trade volume, but was among the main losers as it retreated by 5.3 per cent to close at Dh1.43.

Analysts said high volatility was continuing as speculators and daily traders were in full control of the market while major investors and institutions remained on the sidelines waiting for more indicators before deciding on their future investments.

There were wide gaps in prices between sellers and buyers, which fueled volatility as prices were moving in a relatively wide gap of three to five fils on very low volumes.

In the capital, the ADX advanced on very low turnover with 44.4 million shares worth Dh77.6m changing hands – the lowest turnover in 10 weeks.

Real estate and energy remained the most active sectors and both ended the session almost flat with limited ups and downs. Aldar was the most active stock as it advanced slightly to close at Dh3.56. Heavyweight etisalat played the major role in helping the general index to close ahead as it advanced by five fils to end the day at Dh10.05.

Calm trading and sideways movements continued as the index stayed in a very narrow gap of 10 points up and down. Institutional investors stayed out of the market while speculators were in very limited transactions as the lack of volatility gave them little room for quick profit taking.

UAE stocks followed the performance of global and regional markets throughout the week.

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