The UAE bourses closed flat in lackluster trading on Thursday owing to lack of clear direction in the market. The prevailing uncertainty coupled with weekend mode of trading resulted in bleak volumes on the bourses.
Barring telecom and utilities sectors, remaining all segments on DFM closed in red, while construction, energy and realty stocks on ADX suffered losses. Telecom, banking and consumer sub-indices closed flat on positive side.
Dubai Financial Market (DFM) closed the week at 1538.98 points showing a minuscule fall of 0.79 per cent or 12.21 points, while Abu Dhabi Securities Exchange (ADX) index ended flat at 2553.44 points, an insignificant gain of 2.05 points or 0.08 per cent from the previous day.
Telecom stocks du and Hits Telecom rose 0.46 per cent and 2.22 per cent respectively to end at Dh2.18 and Dh0.828.
"The market players were away from trading in the absence of any positive triggers. Institutional investors were net sellers on the market, while foreign investors were net buyers. There was correlation with global markets, but Asian bourses also closed flat after moving in restricted sideways of trading," an equity trading analyst told Emirates Business.
The market heavy weights Emaar, DFM and du stocks pulled the index down, while Ekttittab, Tabreed, Hits Telecom, Aramex and Dartakaful were the major losers of the day.
Emaar stock eased 2.10 per cent to end at Dh3.26, while the DFM shares fell 1.27 per cent and closed at Dh1.55. The banking major EmiratesNBD ended flat at Dh2.65.
The Dubai's bourse witnessed Dh197.18mn turnover and volume of 194.99mn shares in 2431 deals involving 26 stocks. Reflecting the weak under current market sentiment, losers outnumbered the gainers on the bourse as six stocks advanced, 18 declined and two scrips closed flat.
The DFM witnessed gains in three sessions this week owing to speculative trading activity that was subdued later on owing to the easing of trading interest among the market players.
Taqa shares gained 0.91 per cent and closed at Dh1.11 on the acquisition news. Taqa North, a subsidiary of Abu Dhabi National Energy Company (Taqa) has acquired a stake in Suncor Energy Oil and Gas Partnership in West Central Alberta for 285mn Canadian dollars.
After gaining for a couple of sessions, Aabar stock slipped into pressure ahead of its board meeting to decide on date of EGM to discuss the delisting proposal. Aabar shares fell 3.41 per cent to end at Dh1.70. Dana Gas closed flat Dh0.71.
ADX recorded Dh106.25mn turnover and more than 72mn shares changing hands in 1066 deals. Continuing the mixed trading pattern in a restricted range, ADX registered advances in 13 stocks, declines in 10 and no price change in four scrips.
Aldar and Sorouh stocks closed with less than one per cent losses to end at Dh3.11 and Dh1.94, while RAK Properties closed flat at Dh0.71.
The global cues were weak throughout the week. The poor US house sales data disappointed the market. The Eurozone crisis threat is again coming back to the fore resulting in renewed fears about the recovery prospects in global economy. S&P announced that it raised the estimates for loan losses for Spain banking sector has impacted the market sentiment. French bank Credit Agricole scaled down its profit targets, while another French bank BNP Paribas witnessed its credit rating going down.
Among GCC bourses, Saudi market was closed, while Kuwait and Bahrain moved down with less than 0.50 per cent losses. Qatar and Muscat indices gained less than 0.20 per cent owing to uncertainty in the markets.
© Emirates Business 24/7 2010
