DFM rebounds from 6-week low

DUBAI — The Dubai Financial Market on Monday turned positive and ended higher for the first time in five trading sessions in thin trade. The Abu Dhabi Securities Exchange also moved higher in low trade as property shares advanced.

By Muzaffar Rizvi

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Published: Tue 17 Aug 2010, 11:24 PM

Last updated: Mon 6 Apr 2015, 9:46 AM

The Dubai Financial Market’s General Index rebounded from Sunday’s six-week low after the real estate developer Emaar Properties PJSC said it sold part of the operations of its Hamptons International subsidiary to UK estate agency Countrywide. Emaar shares rose 1.28 per cent to Dh3.14, the most since August 3.

The benchmark index advanced 8.22 points, or 0.56 per cent, to 1,473.71 points but volumes remain low and brokers offered little hope for a sustained rally. Out of 23 stocks traded yesterday, 13 posted gains while three remain unchanged and seven declined as investors exchanged 36.98 million shares worth Dh53.95 million compared to 34.21 million shares aday before.

“Emaar is looking good,” said Hassan Al Salah, head of institutional equities at Al Ramz Securities LLC, an Abu Dhabi- based brokerage. “Gains are related to the sale of the commercial building. There’s more revenue to be recorded down the road from Burj Khalifa, which would have a smoothing effect on earnings,” Al Salah said.

Air Arabia was the most active stock on the exchange. It rose 0.37 per cent to 0.81 fils, trimming its losses to 5.1 per cent since it reported a sliding second-quarter profit.

Arabtec gained 3.09 per cent to Dh1.67 while Dubai Financial Market PJSC advanced 2.82 per cent to Dh1.46. “The market is practically dead right now — it’s the same old story of uncertain global markets and low summer and Ramadan trading,” said Ahmad Shahin, Shuaa Capital equities strategist. “We are all just sitting and waiting for something to happen.”

Shahin said a new initial public offering would help spark the market back into life, but current conditions make it difficult for any company looking to float in the near term. “It’s a catch-22 situation,” he added.

ADX remains steady

The Abu Dhabi Securities Exchange’s General Index, or ADXGI, continued its upward trend as property shares advanced in low trade. Aldar Properties climbed 2.4 per cent, helping Abu Dhabi’s benchmark index rise for a second day since slumping to a 2010 low on Thursday.

The ADXGI rose 8.36 points, or 0.34 per cent, to 2,493.76 points. Out of 21 stocks traded yesterday, seven posted gains while eight remain unchanged and six declined as investors exchanged only 16.42 million shares worth Dh27.12 million.

“The lack of buying interest over the past two months weakens the argument for a material rebound,” Shuaa Capital wrote in a research note. “As such, we see little incentive to buy before a clear pick up in activity is observed.”

RAK Properties rose 2.63 per cent to o.39 fils while Sorouh Real Estate gained 1.91 per cent to Dh1.60. On the negative side, Waha Capital dropped 1.49 per cent to 0.66 fils while Dana Gas and Sharjah Islamic Bank fell 1.28 per cent and 1.22 per cent, respectively. In terms of value and volume, Aldar remained on top as its 6.83 million shares worth Dh14.47 million were traded on the exchange. muzaffarrizvi@khaleejtimes.com

100% compliance achieved in disclosures

DUBAI — Dubai Financial Market (DFM) announced today that its listed local public joint stock companies have recorded a 100 per cent compliance regarding the disclosure of Q2-2010 results within the deadline of 45 days from the end of the period.

The total number of UAE public joint stock companies listed at DFM which disclosed their second quarter results stood at 42 companies, with the exception of Amlak Finance and Tamweel.

DFM suspended trading of 7 foreign listed companies, which didn’t disclose its quarterly results within the deadline including, AL Madina, Grand, IFA, IIG, KFIC, National Industries and Gulf Finance House. —Wam

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