Tuesday, Oct 06, 2015
Abu Dhabi: The UAE’s equity markets ended the day on Tuesday almost flat, as liquidity remained weak on the back of a mood of uncertainty among investors.
The Dubai Financial Market (DFM) index crawled up 0.02 per cent to reach 3,659.67, while the Abu Dhabi Securities Exchange (ADX) general index slid 0.22 per cent to reach 4,554.68.
In Dubai, the total traded value reached Dh323.6 million, as Abu Dhabi saw only Dh199.8 million in trade.
Musa Haddad, equity fund manager at the National Bank of Abu Dhabi, said there were no catalysts to move investors one way or the other.
“It’s mainly short-term retail investors that are in the market now. At this point in time, there’s a lack of clarity, so you’ll continue to see this volatility and huge swings in the market until things are cleared and third quarter numbers are out,” he said.
However, even as investors anticipate Q3 results to provide a catalyst, some analysts are projecting weaker results.
“People are already taking into consideration that the numbers are going to be weaker than they used to be in Q3 2014, so that’s already in the investors’ minds. The issue is just how much lower they’re going to be,” Haddad said.
He added that he expected the market to continue witnessing similar patterns until clarity is provided.
Asked about the impact of the US jobs data, which came out on Friday, Haddad said that investors in the Middle East and North Africa did seem to be taking the announcement into consideration, with the region’s markets not seeing a reaction to the data.
On DFM, Emaar went up 1.34 per cent, and Gulf Finance House gained 0.37 per cent after its announcement about a $37 million debt repayment.
However, Arabtec fell 1.04 per cent, DFM shares slid 0.57 per cent, Damac Properties went down 0.66 per cent, and Dubai Islamic Bank dipped 0.15 per cent.
Steen Jakobsen, chief economist at Saxo Bank, said in a statement that despite the current volatility in emerging markets, there was a silver lining.
“The perfect storm raging through emerging markets is also the biggest opportunity in decades,” he said.
The bank said in its statement that while equities in developed markets saw a 6.2 per cent drop in the third quarter of this year, emerging markets stocks plunged 16.2 per cent.
On ADX, Arkan Building Materials Co topped the gainers’ list on Tuesday with a 14.46 per cent increase, followed by Ras Al Khaimah Cement Company with 7.23 per cent, Ras Al Khaimah Ceramic Co with 3.48 per cent, and International Fish Farming Holding (Asmak) with 1.52 per cent. Abu Dhabi Islamic Bank was also up 0.92 per cent.
Of the 33 stocks traded on DFM, 22 went down, eight went up, and three remained unchanged. Of the 29 stocks traded on ADX, 14 declined, 10 advanced, and five remained flat.
By Sarah Diaa Staff Reporter
Gulf News 2015. All rights reserved.
