A measure of optimism crept into the UAE stock mar kets yesterday as turnover more than doubled from Thursday's level to Dh931.24 million covering about 100 million shares on the Dubai Financial Market (DFM).
Early gains were, however, wiped out in the second half of the day's trading, in which continuous profit-taking saw the market operate in a narrow band and ending the day barely over the breakeven line.
The DFM General Index closed 0.68 per cent higher at 476.51 points. The Abu Dhabi Securities Market (ADSM) General Index followed suit with a 0.19 per cent increase to end the day at 3,474.21 points.
Trading began briskly on the DFM in the hope that yesterday would herald the long-awaited break-out that investors have been waiting for after a long period of negative activity.
Heavyweight Emaar Properties accounted for almost half the day's traded shares with about 45 million of the company's shares changing hands, adding up to a turnover of Dh543.28m. Emaar shares ended the day with an increase of 1.22 per cent, or Dh0.15, to close at Dh12.35.
Aabar Petroleum, which announced on Friday that it had completed the takeover of Singa pore-based Pearl Energy, took a hammering on the ADSM, becoming the fourth largest loser. It dropped 3.87 per cent of its value to end the day at Dh2.73.
Brokers said the day of trading began optimistically, but the positive attitude lost steam halfway through the session. Of the 21 shares traded on the DFM yesterday, 12 advanced, six lost ground and three remained unchanged. "This also paints a picture of a market groping for direction, with traders still uncertain if the bottom has been reached," said an analyst.
The DFM General Index has lost more than half its value since the year began. The ADSM has dropped more than a third since that time.
Dubai Islamic Insurance and Reinsurance (Aman) was the largest gainer yesterday, edging up 3.09 per cent to Dh36.65. Shares of telecom company du followed with a 1.55 per cent rise to Dh5.89. Arabtech shares went up 1.45 per cent to Dh3.58.
Amlak Finance logged the sec ond highest turnover of Dh150.77m from 18.75 million shares.The share gained 0.12 per cent of its value to close at Dh8.04, which is just Dh0.01 over its previous close.
New companies
Sheikha Lubna Al Qassimi, the Minister of Economy and the Chairperson of Emirates Securities and Commodities Authority, has approved the applications of four companies United Kaipara Dairies, Arab Orient Insurance, Dubai Development and Gulf Mineral Water for registration on the stock exchange. Sheikha Lubna Al Qassimi, the Minister of Economy and the Chairperson of Emirates Securities and Commodities Authority, has approved the applications of four companies United Kaipara Dairies, Arab Orient Insurance, Dubai Development and Gulf Mineral Water for registration on the stock exchange.
Trading views
Yesterday's trading was meant to generate end-of-day gains for bigticket investors. This is clear from the large turnovers at the Emaar and Amlak counters, resulting in small gains in their share prices.
Investors are still waiting for details of the buy-back plan Emaar Properties dropped on the market last week.
Trading has been muted since then, although Emaar's stock has witnessed large turnovers.
Some analysts are of the view this is the market's accumulation phase gentle increases like the one witnessed yesterday may be signs of greater prudence.
By Yazid Darasha
© Emirates Today 2006
