Sunday, Jun 10, 2012
By Himendra Mohan Kumar
Staff Reporter
Dubai
The Dubai Financial Market (DFM) index further consolidated in the postitive territory yesterday as investors anticipated Spain to be bailed out by fellow Euro zone member countries. The volume of shares traded on the market however, remained low due to a general lack of risk appetite.
Spain is seeking a $125 billion bailout to rescue its banking system which has come under extreme stress in recent months.
“The market will keep an eye on news flows from Europe for direction this week,” said a Dubai-based stock trader.
Market analysts also say the international markets are also coming off their lows in anticipation the U.S. Federal Reserve and Asian central banks will loosen monetary policy and pump more money into the financial system to shore up their economies which look to be teetering on the brink of yet another recession.
The DFM index closed yesterday at 1,467.03, up 0.23 per cent. Around 75.42 million shares, cumulatively worth about Dh74.03 million were traded on the stock market yesterday.
About 6.43 million shares of real estate major Emaar, cumulatively valued at around Dh18.44 million were traded on the market yesterday, its stock closing 0.35 per cent higher at Dh2.86.
The global financial markets have all but wiped out their gains made in 2012 on fears of a disorderly sovereign debt default by Greece. Analysts say the regional markets are trading with a negative bias on low volumes as international oil prices, which are a major support to the region’s economy, are falling. Global oil prices have fallen more than 10 per cent since April and could fall further given a deepening Euro zone sovereign debt crisis.
Of the 27 company stocks traded yesterday, 12 rose, while 11 fell and 4 closed unchanged. The day’s top gainer was Hits Telecom, its shares closing 5.1 per cent higher at Dh1.01. Takaful-EM was the day’s main loser, its shares dropped 2.48 per cent to close at Dh0.550.
Shares of Emaar were the most traded by value while Gulf Finance House’s shares were the most traded by volume on the Dubai market yesterday.
By Himendra Mohan Kumar
Staff Reporter
Abu Dhabi
The Abu Dhabi Securities Exchange (ADX) general index consolidated its gains yesterday, rising 0.61 per on improved risk appetite among investors.
The trading volume on the the market improved as market participants bet Spain will be bailed out by Euro zone members.
‘The stock of Aldar attracted local buyers today. Overall, the turnover is low as people prefer to be on the sidelines. The trend on the international markets will determine risk appetite in the local market in the days ahead,” said a stock broker.
Fundamentally, Abu Dhabi is backed by the solidity of its banks and oil exports which happens to be a major source of government revenue and this should reflect in the market sentiments when the bearish trends reverse.
Analysts say the market will trade in a range with a downside bias until greater clarity on how Europe is going to tackle its debt problems emerges.
The ADX general index closed yesterday at 2,454.47, the rise being led by the telecommunication sub index. Blue chip real estate stocks such as Aldar Properties and Sorouh Real Estate gained.
Yesterday, around 55.95 million shares cumulatively worth about Dh91.12 million traded on the Abu Dhabi stock market. Of the 32 company stocks which traded, 9 advanced, while 12 declined and 11 closed unchanged.
The potential merger between Aldar and Sorouh remains a catalyst for the market, as and when some concrete details on this deal emerge.
The fears of Greece’s exit from the Euro zone and slowing global economic growth are major market concerns as are the possibilities of a hard landing for China in the coming months on the back of falling orders from its main markets - Europe and the U.S., where economic growth is also showing signs of tapering off.
The stock of Aldar closed yesterday 1.8 per cent higher at Dh1.14. About 12.39 million shares of Aldar cumulatively worth about Dh13.97 million changed hands on the market.
The top gainer on the Abu Dhabi market yesterday was Green Crescent Insurance Company, its shares rising 3.57 per cent to Dh0.29 by the close of trading. Phamaceutical company Julphar was the day’s top loser, its stock closing 9.51 per cent lower at Dh2.76.
The shares of regional telecommunications major Etisalat were the most traded in terms of value while Aldar’s shares were the most traded by volume on the Abu Dhabi market yesterday.
By Himendra Mohan Kumar Staff Reporter
Gulf News 2012. All rights reserved.
