Volatility has characterised both bourses of late, in line with the gulf equity markets generally. The reason cited for the recent wild gyrations is that large initial public offerings (IPOs) are sucking out a huge amount of liquidity from the markets. The latest of these is the Dh2.56 billion Air Arabia IPO, which was subscribed 150 per cent. When the company will actually list is uncertain, given that it has to balance its quest for a premium with the consequences a delayed listing could have on market liquidity.

On the DFM, shares in Dubai Islamic Bank, the world's largest commercial Islamic lender, rose 1.3 per cent to Dh7.09, after losing 8 per cent over the past two days. Shares in the DFM company, the region's only publicly traded bourse jumped 3.9 per cent to Dh2.4 while United Printing and Publishing (UPP), the printing arm of Emirates Media, rose 3.17 per cent to Dh3.25.

The biggest loser yesterday was Dubai National Insurance and Reinsurance Company (DNIR) falling 4.9 per cent to Dh3.09. Emaar Properties, the largest publicly traded property developer in the Middle East, fell 0.05 per cent to Dh11.15, bringing its two-day decline to 2.2 per cent. The company accounts for 23 per cent of the DFM's index. The decline reflects concerns of its announcement on Sunday that its gross profit margin in the first quarter fell to 49.3 per cent from 64.4 per cent in 2006. An escalation in construction costs and the unavailability of free land outside the UAE is said to account for the lower profit margin.

The ADSM saw 18 of the 35 stocks decline, 12 advanced and five remain unchanged. Dana Gas fell 0.7 per cent to Dh1.41. On Sunday it announced that it had signed an agreement with the Kurdistan Regional Government of Iraq to develop its natural gas industry.

The Abu Dhabi National Foodstuff Company, known as Foodco, rose 2 per cent to Dh3.59 as it approved a 10 per cent cash dividend and 16.29 bonus shares at its annual general meeting.