Aug 07 2012
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DFM Index falls, ADX gains
Tuesday, Aug 07, 2012
Dubai: The Dubai Financial Market ( DFM ) index fell again on Tuesday, though marginally, as profit-taking by investors cashing in on the market’s recent gains continued. Overall, the market index is nudging upwards, helped by some strong second quarter corporate earnings, although the downside risks remain as the economies in Europe and the US are slowing.
The volume of trade on the Dubai market fell compared to the first two days this week due to the absence of a catalyst and lack of investor interest due to Ramadan. The DFM index closed at 1,556.79, down 0.15 per cent. Around 60.92 million shares, cumulatively worth about Dh80.86 million were traded on the stock market.
Analysts say the market is well poised for a sustained rally if the global macro-economic indicators take a turn for the better and the US Federal Reserve announces a third round of quantitative easing to shore up a flagging domestic economy and the European Central bank comes out with its own quantitative easing.
Of the 29 company stocks traded yesterday, 12 rose, while 13 fell and 4 closed unchanged. The day’s top gainer was AlMadina, its stock rising 8.1 per cent to close at Dh0.681. DEPA was the day’s main loser, its shares fell 10.86 per cent to close at Dh0.320. The shares of Emaar were the most traded in terms of value while Air Arabia’s shares were the most traded by volume.
The Abu Dhabi Securities Exchange ( ADX ) general index recovered on Tuesday to reclaim most of the gains it surrendered on Monday as investors regained confidence on positive global sentiments and higher oil prices. However, the investor participation remained low due to lack of catalysts and Ramadan, which reflected in the low turnover on the market.
The market has generally been trading in the positive territory in recent days on the back of some strong second quarter corporate earnings, particularly from the banking sector.
The ADX general index closed yesterday at 2,510.87, led by gains in banking, real estate and energy companies although shares of telecommunication services and investment and financial services companies declined, which pared the index’s gains.
Analysts say participation of foreign investors on the market remains low despite attractive valuations for several stocks, some of which continue to trade near their lifetime lows.
Yesterday, around 46.19 million shares, cumulatively worth about Dh70.04 million were traded on the Abu Dhabi stock market. Of the 29 company stocks traded, 10 advanced, while 10 declined and 9 closed unchanged.
The stock of Abu Dhabi’s real estate major Aldar Properties closed yesterday at Dh1.22, 0.83 per cent higher, though Sorouh Real Estate’s shares fell 0.93 per cent to close at Dh1.22. About 8.83 million shares of Aldar, cumulatively worth about Dh10.75 million changed hands on the market. The potential merger between Aldar and Sorouh, remains a catalyst for the market, maintain experts.
The top gainer on the Abu Dhabi market yesterday was Qatar Telecom, its shares closing 4.95 per cent higher at Dh106.. Watania was the day’s top loser, its stock closing 6.93 per cent lower at Dh0.97. Etisalat’s stock was the most traded in terms of value while Aldar’s shares were the most traded by volume.
By Himendra Mohan Kumar, Staff Reporter
Gulf News 2012. All rights reserved.
© Copyright Zawya. All Rights Reserved.
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