Wednesday, Nov 30, 2005
Dubai: Dubai shares tumbled more than three per cent on Monday led by heavyweight Emaar Properties while Abu Dhabi shares slipped one per cent and analysts said the market was correcting after several stocks had become too pricey.
The Dubai Financial Market index of 29 listed companies dived 3.27 per cent to 1,126.75 points in thin trade of 54.6 million shares. The market turnover was well below-average at Dh861.5 million with losers ahead of gainers 15 to three.
The index has shed 11.1 per cent from its record close of 1,267.32 points posted on November 11.
Abu Dhabi stocks fell 0.95 per cent to 5,493.42 but trading was brisk with 60.5 million shares worth Dh509.7 million changing hands. Losers beat gainers 28 to 11.
"The market is correcting since some of the stocks had become too expensive. I think it will be weak for a while before you would see new buying coming in again. Emaar breached a resistance level of Dh24.30," a stock broker said.
Emaar Properties, Dubai's top traded stock by value, dropped 2.83 per cent to Dh24.05. Some 15 million Emaar shares worth Dh362.3 million were traded.
The services sub-index shed 4.84 per cent in Dubai, banks dropped 2.16 per cent and investment slipped 2.51 per cent.
"The market is technically overbought and there are only sellers. I think it could fall further until it hits a resistance level of 1,060 points. It will rise again when we get close to the end-year results," said a leading stock market analyst.
The Dubai index finished with a loss of 4.6 per cent in the week while the Abu Dhabi market shed 2.9 per cent.
Dubai National Insurance and Reinsurance was the top loser in Dubai, falling 13.47 per cent to Dh8.22 and Islamic Arab Insurance Company dropped 3.73 per cent to Dh7.74. Dubai Islamic Bank, Dubai Investments and Arab International Logistics all shed more than two per cent.
Among the gainers, Kuwait's Global Investment House rose 3.38 per cent to Dh32.10 and National Bank of Dubai gained 1.05 per cent to close at Dh197.15.
Emirates Islamic Bank told the Dubai Financial Market its board had propped a 10-for-one stock split and had called a shareholders meeting on December 21 to approve it.
In Abu Dhabi, the bank sub-index dropped 0.67 per cent, services by 1.5 per cent and industry by 0.81 per cent.
Abu Dhabi Ship Building was the top gainer, rising 9.88 per cent to Dh45.60, while Al Wathba National Insurance Co climbed 7.63 per cent to Dh13.40.
RAKBank was a top loser, falling 8.64 per cent to Dh11.10 and Ras Al Khaimah Cement dropped 4.4 per cent to Dh4.56.
The UAE's combined share index of 78 companies listed in Dubai and Abu Dhabi is up 119.58 per cent since the beginning of this year, helped by robust growth in corporate profits and flush liquidity.
Dubai shares tumbled more than three per cent on Monday led by heavyweight Emaar Properties while Abu Dhabi shares slipped one per cent and analysts said the market was correcting after several stocks had become too pricey.
Gulfnews 2005. All rights reserved.
