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Dubai Bourse Slides for Third Day

Trading at the Dubai Financial Market was volatile, with the benchmark index bobbing in and out of negative territory before settling down 0.58 per cent lower to 1,558.98.

“Investors sobered up and weren’t too keen about holding on to positions. The reality is that despite encouraging moves by the government, the economic problems are still there — property market is still down and liquidity issues remain,” said Vyas Jayabhanu of Al Dhafra Financial Brokerage, adding “it is a very long road to recovery.”

The Dubai bourse’s index losses piled up to 5.7 per cent in three consecutive sessions after surging 7.91 per cent last Monday. The index shed 2.6 per cent from last week.

“Both UAE markets are still in a bottoming out process where the crisis of confidence is slowly giving way to speculation. Government assurances have put a near term floor in the market but a sustained recovery will only come when the global outlook improves,” said Matthew Wakeman, managing director of cash and equity linked trading at EFG Hermes.

Trading was steadier at the Abu Dhabi Securities Exchange where its main index finished 1.61 per cent higher at 2,376.48, gaining 5.6 per cent from the previous week.

Arabtec Holding, the country’s biggest construction company dropped 3.77 per cent to Dh1.53 to extend losses to 22 per cent. Emaar Properties edged down 0.48 per cent to Dh2.06, giving up 6.08 per cent in three days.

Declines in banks were paced by the Commercial Bank of Dubai, tumbling 4.76 per cent to Dh3.74. Emirates NBD, Dubai’s biggest bank by assets, lost 3.37 per cent to Dh 3.15.

EFG-Hermes said that along with the refinancing of Borse Dubai’s debt which controls the Dubai stock exchange, the emirate’s estimated debt was reduced to $73.4 billion and altered its total projected repayments to $13.1 billion in 2009. The amount of loans and bonds maturing this year is $8.9 billion.

In Abu Dhabi Emirates Telecommunications Corp or Etisalat jumped 6.39 per cent, extending gains for a third trading day after announcing a 35 per cent cash dividend and bonus shares.

Qatar Telecom rose 4.47 per cent to Dh95 after acquiring a 65 per cent stake in PT Indosat Tbk, the second largest mobile operator in Indonesia.

First Gulf Bank ended 4.09 per cent lower at Dh8.0. The bank said late on Wednesday its shareholders approved the reduction of foreign share ownership to 15 per cent from 30 per cent.

· rocel@khaleejtimes.com