Thursday, Jun 11, 2015
Dubai: Dubai index is likely to trade sideways in coming weeks with volumes tapering off as the market head in the Ramadan season.
The Dubai index ended more than 2.5 per cent lower at 4,072.83, after dipping below the keenly watched 4,000 mark earlier in the week.
“Market would trade sideways but we could improve at the close of Ramadan and we enter into the results season,” said Muhammad Shabbir, head of equity funds and portfolios at Rasmala Investment Bank.
Out of a total of 35 companies traded on the exchange, shares of 30 companies fell, while shares of 4 companies rose.
Volumes continued to be on a higher side for another session. Shares worth more than Dh2 billion were traded on Thursday, compared to daily average volumes of Dh250 million.
“Most of the activity that we see is due to the churning of stocks. People are flipping, selling and then buying,” Shabbir added.
The Abu Dhabi Securities Exchange General Index ended 0.77 per cent lower at 4,555.29. Aldar Properties ended 3.16 per cent lower at Dh2.76, while Eshraq Properties ended 7.14 per cent lower at Dh0.78. Etisalat Telecommunications ended 0.44 per cent lower at Dh11.35. Out of a total of 34 stocks traded on the exchange, shares of 22 companies fell, while another 9 rose.
Saudi markets watched:
Investors would closely watch the Saudi market as it opens for Qualified foreign investors next week.
The Tadawul All Share index ended 0.24 per cent lower at 9,518.38 due to weak crude prices.
Saudi Basic Industries ended 0.32 per cent lower at 103.25 Saudi Riyals, while Alinma Bank ended more than 1 per cent lower at 23.55 Saud Riyals.
Elsewhere in the Gulf, Qatar Exchange index ended 0.36 per cent higher at 11,879.56.
“Qatar market would see more consolidation until we see further improvement on the sentiment as far as the world cup issue is concerned,” Shabbir said.
Muscat Securities Exchange index ended 0.14 per cent higher at 0.14 per cent higher at 6,482.34. Kuwait Stock Exchange ended 0.32 per cent lower at 6,285.94.
Egypt’s benchmark slipped in trade as investors awaited a monthly meeting of the central bank to decide on the interest rates.
The $334 million (Dh1.23 billion) flotation of the Egyptian subsidiary of Dubai developer Emaar Properties may also be draining some liquidity from the market. The offer, now in its institutional stage, will open to retail investors next week.
By Siddesh Suresh ?Mayenkar Staff Reporter
Gulf News 2015. All rights reserved.
