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DFM shares drop as ADSM rises 2.2pc

DUBAI - The Dubai Financial Market (DFM) General Index yesterday dropped 0.7 per cent to close at 5,578.19, with Shuaa Capital and Dubai Islamic Bank (DIB) as among the big losers. Shares on the Abu Dhabi Securities Market (ADSM) Index added 2.2 per cent at 4,676.47 points.

A Dubai-based investment bank covering the Gulf region, Shuaa slipped 3.2 per cent to Dh7.98 while DIB, the world's first full-fledged bank complying with Islamic laws, dropped 1.8 per cent to Dh9.81. Grand Real Estate Projects Co slumped 5.8 per cent to Dh4.04.

The total value of shares traded on DFM reached Dh1.34 billion, as compared with the 50-day average of Dh2.13 billion, while that of ADSM shares amounted to Dh981.2 million compared with the 50-day average of Dh1.14 billion.

DFM yesterday issued its first classifications for listed companies that will enable investors to identify Shariah-compliant stocks. The standards will also provide guidance to brokers on which companies are conventional or operate in accordance with Islamic laws.

"Trading within Islamic financial markets requires criteria that distinguish between Shariah-compliant financial instruments and conventional ones," said Hussain Hamid Hassan, chairman of DFM's board of advisory, in a statement. "We are in the process of issuing directives for investors."

Demand for Islamic investments has increased as the Gulf economies enjoy gains from high oil export receipts.

Abu Dhabi Islamic Bank, the UAE's second-largest lender complying with Islamic laws, gained 2.6 per cent to Dh68.70 while Emirates Telecommunications Corp, or Etisalat, added 1.7 per cent to Dh23.80.