UAE shares pause for breath

Tuesday, Jan 17, 2006

Dubai: UAE shares were flat in thin trade yesterday, pausing for breath after making strong gains earlier in the month, and analysts said strong corporate results and economic fundamentals should boost the market later this month.

Mortgage lender Amlak Finance was the biggest volume driver in Dubai but fell more than one per cent while recently listed stocks were the most active in Abu Dhabi.

Aircraft leasing company Oasis rose 3.2 per cent to Dh14.50 after announcing it had acquired 25 planes from Airbus Financial Services for Dh3.3 billion.

The DFM index of 30 listed companies rose 0.02 per cent to 1,075.06 points with turnover thin at Dh790.5 million. Losers were ahead of gainers nine to six.

Abu Dhabi stocks were off 0.13 per cent at 5,212.27 points with share sales nearly flat at Dh231.4 million. Losers were ahead of gainers 20 to 17.

"After a correction in December, the market recovered in January and we deserved some correction, a bit of a slow down," said Hany Hussain, fund manager at Makaseb Funds Co.

"Investors are waiting for the quarterly results which will be good, economic fundamentals are strong and the markets should recover. I don't think there are very many people interested in selling at this level," he added.

Amlak Finance, Dubai's top traded stock, fell 1.3 per cent to Dh11.65 while leading property developer Emaar, the third most active, gained 0.2 per cent to Dh24.45.

Commercial Bank of Dubai was the top gainer, rising 0.8 per cent to Dh24.60 while Dubai Islamic Bank also gained 0.8 per cent to Dh31.50.

Arab Insurance Group was the top loser, falling 3.2 per cent to Dh4.79.

In Abu Dhabi, Union Insurance Co was a top gainer rising 6.55 per cent to Dh6.67.

Among top losers, Abu Dhabi National Hotels fell 6.92 per cent to Dh18.15 and Al Wathba National Insurance Co. dropped 6.3 per cent to Dh12.65.

NBAD postpones Dh2.5b convertible notes issue

The National Bank of Abu Dhabi, UAE's biggest bank by assets, has postponed its Dh2.5 billion convertible notes issue following the death of Shaikh Maktoum Bin Rashid Al Maktoum.

"Given the recent mourning in the UAE, the timetable for the NBAD subordinated convertible notes has been pushed back," the bank said.

"The new timetable will mean that the subscription period for the offer will start on January 25 and close on February 18".

The cut-off date to be eligible for the offering for NBAD shareholders has been pushed back to January 16 from January 8, it said.