Sponsored by   Mudabala
 
 
Advanced Search
BETA
Loading Loading ...
Sat, 20 Mar 2010 | 04:27 GMT
Sat, Mar 20, 2010, 04:27 GMT
 

Double-digit gains for 19 stocks on Dubai bourse

Emirates Business 24/7
 
Email
Print
Comment
PDF
Text Size  
 
Emirates Business 24-7, 18 November 2008

Nineteen stocks made double-digit gains to help the Dubai Financial Market claim its eighth-largest one-day rise yesterday.

After losing a third of its value in the preceding seven sessions, the DFM bounced back to climb 8.15 per cent to 2,143 points.

"This is a technical rebound after losing 800 points in a week," said Sherif Abdul Khalek, Beltone Financial institutional trading manager.

The General Index started tentatively and fell 20 points upon opening as Sunday's residual orders were completed, but cautious buying stopped it from falling further. The DFM then mounted two failed rallies before conclusively reconquering the 2,000-mark around the mid-session.

This sparked heavy buying, with investors increasingly confident that the index had at last found its bottom, with most of the blue chips soaring to near-maximum gains.

This propelled the index up to an intraday high of 2,168 points, before some late selling eased it down to its closing figure.

"We're not safe yet, but it seems we're on the mend," said Mohammed Ali Yasin, Emirates Securities managing director.

"There's a lot of cash on the sidelines, but it had no confidence to return to the market and so if the market continues to recover, slowly more people will return."

Emaar fell in early trading, before rebounding spectacularly to close up 14.98 per cent. Sixteen other stocks surged more than 14 per cent, including Arabtec, Amlak Finance, du and Dubai Islamic Bank. All active sectors advanced, although banking was a laggard after Emirates NBD and Commercial Bank of Dubai fell 4.96 and 1.42 per cent respectively. Overall, gainers outnumbered losers 25:3.

"The market fell by more than 30 per cent in just over a week, so a strong return is needed to show that maybe there's a consensus from various investor groups that we have reached the floor," said Yasin.

Yesterday's turnover was Dh742 million, which is more than double Sunday's total and the highest for seven sessions.

Emaar was top trader after seeing Dh244m of shares change hands, followed by Air Arabia with Dh71m and DFM Company with Dh67m. Yesterday's increase was the DFM's eighth largest of all time, while the top four have all been achieved this year. Similarly, seven of its 10 biggest losses have also occurred in 2008 to underline the volatility of the bourse this year. "If we were to test 2,000 again, the index could set a new low - sentiment is still very negative and the trend has yet to be reversed," said Khalek.

Foreigners were net buyers of Dh49m of shares on the DFM last week. Much of this cash is believed to have been used to cover short positions, which suggests overseas traders believed the market was poised to rebound.

"Short selling needs to be stopped. It's betting against companies and is very risky - these traders have an ethical responsibility and should cease short selling, which is happening at the custodian level," said Yasin.

"The authorities should ask to see the books and send a very strong message short selling is prohibited and any institution found involved will face severe penalties."

Further gains may be smaller
Analysts predict the Dubai bourse will make further, smaller gains today.

"I expect the market to continue to advance and it should add another three to four per cent," said Sherif Abdul Khalek, Beltone Financial institutional trading manager.

"Technically, a rebound should recover half the point lost in the preceding fall and so Dubai could reach 2,400 to 2,600 in the coming sessions.

"Tomorrow should see increased profit taking, although this depend on how active high net-worth investors and funds are. Foreign funds are largely absent and retail investors don't have the power to take the market much further."

Analysts had warned the market was in acute peril following Sunday's finish below 2,000 points and Emaar's slump to under Dh3.

Many feared a further collapse, but investors instead started accumulating, first in Emaar and then into most other stocks, particularly the ones hardest hit during the recent slump.

This should signal the market is at last bottoming out, although investors hoping for a spectacular rebound are likely to be disappointed, with most analysts predicting a broad consolidation trend punctuated by volatile moves up and down.

In the current downturn, traders have sold into every rally and so some profit taking should be expected today, although this is unlikely to be enough to send the market back into the red.

Meanwhile, Mohammed Ali Yasin, Emirates Securities managing director, urged investors not to become carried away.

"We face a big task to claw back the losses of the past week - we're trying to get Emaar above Dh6 again, so it's a case of trying to recover to more respectable losses," he added.

By Matt Smith

© Emirates Business 24/7 2008

 
x DISCLAIMER

Zawya is a distributor (and not a publisher) of content supplied by third parties and subscribers. Any opinions, advice, statements, services, offers, or other information or content expressed or made available by those third parties, including information providers, subscribers or other users of the Service, are those of the respective author(s) or distributor(s) and not of the Company. The Company neither endorses nor is responsible for the accuracy or reliability of any opinion, advice or statement made on the Service by anyone other than authorized Service employee spokespersons while acting in their official capacities. The Company is not responsible for any infringement of intellectual property rights or breach of any applicable law or regulation, including regulation in relation to financial services or the distribution of financial products, defamation, data protection, telecommunications (including regulations relating to excessive use, spamming or other abusive activities) or obscene, offensive or illegal content). Under no circumstances will the Company be liable for any loss or damage caused by a member's reliance on information obtained through the Service. It is the responsibility of member to evaluate the accuracy, completeness or usefulness of any information, opinion, advice or other content available through the Service. Please seek the advice of professionals, as appropriate, regarding the evaluation of any specific information, opinion, advice or other content.

Read the full Member Agreement
http://www.zawya.com/legal/NewsLetter.cfm?name=disclaimer
 
 
Access to this article is subject to specific terms and conditions. Read Disclaimer.
 
 
 
Community Comments (0) - Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
 
 
 
Loading ...
 
close x
Report Abuse
Loading ...
 
 
Loading ...
close x
Zawya Comment Policy:
 
  1. Zawya encourages you to add a comment to this discussion. You agree that when you add content to this discussion your comments will not:
    1.1   Contain any material which is libelous or defamatory of any person, is obscene, offensive, hateful or inflammatory or causes damage to the reputation of any person or organisation.
    1.2   Promote sexually explicit material, violence, discrimination based on race, sex, religion, nationality, disability, sexual orientation or age or any illegal activity.
    1.3   Be made in breach of any legal duty owed to a third party, such as a contractual duty or a duty of confidence.
    1.4   Be threatening, abuse or invade another's privacy, or cause annoyance, inconvenience or needless anxiety.
    1.5   Be used to impersonate any person, to misrepresent your identity or affiliation with any person, or be likely to deceive any person.
    1.6   Give the impression that they represent Zawya.
    1.7   Advocate, promote or assist any unlawful act such as (by way of example only) copyright infringement or computer misuse.
  2. The content posted on www.zawya.com is created by members of the public. The views expressed are theirs and unless specifically stated are not those of Zawya. Zawya reserves the right to review all comments prior to posting and edit or delete any contribution, but Zawya is not responsible for and can not be held liable for any content posted by members of the public on www.zawya.com.
  3. Zawya is not responsible for the availability or content of any third party sites that are accessible through www.zawya.com. Any links to third party websites from www.zawya.com do not amount to any endorsement of that site by Zawya and any use of that site by you is at your own risk.
  4. By submitting your comment, you hereby give Zawya the right, but not the obligation, to post, air, edit, exhibit, telecast, webcast, re-use, publish, reproduce, use, license, print, distribute or otherwise use your comments worldwide, in perpetuity.
 
 
 
 
 
Community Buzz

Stories

 

Companies

Most viewed companies by Community in the last 24 hrs
Company Name Country Industry
Consolidated Contractors Company Overseas Construction and Design
Saudi Binladin Group Saudi Arabia Construction and Design
Saudi Telecom Saudi Arabia Telecommunications Services
Saudi Electricity Company Saudi Arabia Electric Utilities
Ministry of Health - Saudi Arabia Saudi Arabia Ministries and Municipalities
Nissan Motor Egypt Egypt Transportation Products
Qatar Engineering and Construction Company Qatar Construction and Design
Ministry of Health - Kuwait Kuwait Ministries and Municipalities
National Oil Corporation - Libya Libya Oil
Air Arabia UAE Transportation Services
 

Projects

 

Blogs

 
 
 

 
 
 
 
 

Site is optimised for viewing at 1024 x 768 with Internet Explorer v6 and Firefox v3.0 and above.
Copyright © 2010 ABQ Zawya Ltd. All rights reserved. Please read our Membership Agreement