DFM continues to slip on profit booking |
|
Share With Members!
Text Size 
Equities on the Dubai Financial Market (DFM) – led by realty and banking stocks – lost further ground yesterday in the midst of weak global factors.
Mirroring the continued selling across the counters, the general index fell 1.43 per cent to close at 2286.26 points, a loss of 33.11 points from the previous close of 2319.37.
"Profit booking continued amid weak global cues," said Amjad Bakir, a VIP sales trader at Mubasher. "Institutions have seen selling for two sessions as the Dow Jones has still not stabilised above the 10,000 mark, indicating further weakness on the global markets."
Shiv Prakash, a technical analyst at MAC Capital Advisors, said: "The DFM general index has met profit taking on its gains, but remains above the critical support levels. The next support level is 2263 and below this we may retest the neckline levels of 2200 on the daily charts."
Only three stocks – Gulfa, Emirates NBD and Arab Insurance Group – achieved gains. Gulfa shares rose 4.81 per cent to close at Dh3.92. And after announcing its third-quarter results, Emirates NBD moved further as the stock gained 4.04 per cent and closed at Dh4.63. Arab Insurance closed 0.99 per cent up at Dh2.05. Showing the negative breadth of the trading, 25 stocks declined, three advanced and one remained unchanged.
Ian Munro, Research Head at MAC Capital Advisors, said: "Negative lead on Asian markets again and oil at $79.25 per barrel impacted the trading sentiment. Overall it was a weaker UAE market yesterday."
The market opened on a steady note and rose to 2335 points – which remained the day's high – in the first hour as major stocks such as du gained ground. Du was trading more than two per cent higher while Deyaar eased more than one per cent in the first hour. By 1pm du shares were trading flat at Dh4.09 and they later closed with a miniscule loss of 0.24 per cent at Dh4.08. The trading value surpassed Dh0.7bn an hour before trading closed. The second half of the session saw steady downward movement as the index slipped to 2272.35, the session's low, before closing at 2286.
Bakir said: "The support level for the DFM general index is 2225 and resistance levels are 2310/2337 and 2360. In the absence of any positive trigger the market is likely to move in sideways trading in the range of 2300 to 2400. If the index slips to 2200 then the market will turn bearish."
Prakash added: "If the market remains below the pivot levels of 2297, we could see it move lower until the 2259/2232 supports. Bullishness could be seen above 2297 until the 2324/2362 resistance levels."
Market leader Emaar topped the list of major value and volume pushers. Despite a drop in its share price, Emaar recorded turnover of Dh439 million and trading of more than 92 million shares. The stock accounted for 44 per cent of the total trading on the bourse. The realty major's shares fell 3.51 per cent to close the day at Dh4.67.
Bakir said: "Yesterday saw a huge accumulation in Emaar. The markets undercurrents are still bullish and the index is likely to gallop towards 2570 points on any positive trigger. However, frequent profit booking is anticipated at regular intervals."
Realty stocks Arabtec, ahead of third-quarter results, Deyaar, Drake & Scull International (DSI) and Union Properties (UPP) eased. UPP fell 3.77 per cent and closed at Dh1.02. Deyaar eased 3.61 per cent to close at Dh0.80 and DSI moved down by 3.57 per cent and closed at Dh1.08.
Analysts said the future prospects for market heavyweights looked good and investors could buy on every fall. Munro said: "Led by Emaar, DFM, Aldar, Arabtec and the banks, the index eased further. Arabtec's third-quarter results are due today, we expect slowing quarter-on-quarter figures due to Ramadan and the summer effect on project work, with forecast third-quarter net earnings of Dh193.9m, -4 per cent quarter-on-quarter."
Trading turnover eased marginally to Dh999.67m as more than 388 million shares changed hands in 8,773 deals. The top trading pusher was Emaar, followed by DFM with Dh210m, Arabtec with Dh80m, du with Dh29m and DSI with Dh23m.
The top five volume pushers were Emaar, DFM, Arabtec, DSI and UPP as these stocks recorded trading volumes of 92 million shares, 81 million, 23 million, 21 million and 18 million, respectively.
Gulf Navigation told the exchange its board meeting was being held yesterday. Apart from the banking index, which moved up 1.07 per cent, the other sub-indices closed lower with utilities and realty indices losing the most. The utilities index dropped 3.70 per cent and real estate fell 3.37 per cent.
Dubai bourse opens X-Stream trading system
The DFM yesterday announced that it will launch the new X-Stream trading system today.
Nasdaq OMX has delivered the new platform, which will be replacing the existing Horizon system. The migration to the high-capacity platform comes after DFM ran extensive training sessions for brokerage firms involving more than 200 trading managers representing 99 firms.
By Sreenivasa Rao Dasari
© Emirates Business 24/7 2009
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
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
Community Comments (0) - 
Comment on this article 
Comment on this article
The opinions of the authors expressed herein do not necessarily state or reflect Zawya. Read our Comment Policy.
Loading ...
Zawya Comment Policy:
-
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. - 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.
- 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.
- 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.
Loading ...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 |
| Zuhair Fayez Partnership Consultants | Saudi Arabia | Construction and Design |
| Saudi Binladin Group | Saudi Arabia | Construction and Design |
| Saudi Electricity Company | Saudi Arabia | Electric Utilities |
| Barwa Real Estate Company | Qatar | Landlords and Developers |
| Roads and Transport Authority - Dubai | UAE | Regulatory and Administrative Bodies |
| Mubadala Development Company | UAE | Investment Firms and Funds |
| Ministry of Health - Saudi Arabia | Saudi Arabia | Ministries and Municipalities |
| Abu Dhabi Oil Refining Company | UAE | Oil |
| Qatar General Electricity and Water Corporation | Qatar | Electric Utilities |
Projects
Most viewed projects by Community in the last 24 hrs
| Project Name | Country | Sector |
| ENEC - Nuclear Power Plant | UAE | Power and Water |
| Abu Dhabi DOT - Abu Dhabi Metro | UAE | Infrastructure |
| Takreer - Ruwais Refinery Expansion | UAE | Oil and Gas |
| Abu Dhabi Ports Company - Khalifa Port and Industrial Zone (KPIZ) | UAE | Infrastructure |
| Aramco/Dow Chemical - Ras Tanura Integrated Refinery and Petrochemicals Complex | Saudi Arabia | Oil and Gas |
| SATORP - Jubail Refinery and Petrochemical Complex | Saudi Arabia | Oil and Gas |
| Emirates Aluminium (EMAL) - Smelter Complex - Phase 1 | UAE | Industry |
| Dubai Racing Club - Meydan City - Meydan Racecourse | UAE | Real Estate |
| Dubai RTA - Dubai Metro | UAE | Infrastructure |
| IGD - Gasco - Habshan 5 Gas Processing Plant | UAE | Oil and Gas |