DFM continues to slip on profit booking |
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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
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