Equities Take U-turn;
Dubai Hits Six-week Low

DUBAI - UAE bourses on Tuesday turned bearish as investors cashed in on the previous day’s gains. Dubai’s benchmark index ended lower for the seventh session in eight, slumping to a six-week low while Abu Dhabi’s measure dropped to the same milestone, underlining investor anxiety over corporate earnings in the UAE.

By Muzaffar Rizvi

Published: Wed 20 Jan 2010, 11:56 PM

Last updated: Mon 6 Apr 2015, 10:25 AM

Arabtec fell 3.29 per cent to Dh2.35, Emaar Properties dropped 3.21 per cent Dh3.32 and Dubai Financial Market and Drake & Scull each lost 2.4 per cent. This quartet account for more than two-thirds of all shares changing hands on the index yesterday.

Dubai Financial Market’s General Index fell 1.6 per cent to 1,661.54 points, its lowest close since December 10. Emirates NBD, the country’s biggest bank, dropped to the lowest since December 2008 and closed at Dh2.63. Gulf Finance House surged 6.78 per cent and finished the day at Dh1.26.

Abu Dhabi’s benchmark index dropped 0.89 per cent to 2,655.57 points, its sixth decline in seven sessions. Abu Dhabi National Energy Company, or Taqa, declined 3.3 per cent and Sorouh Real Estate fell 3.8 per cent. Aabar Investments also dropped to Dh2.30. In banking sector, First Gulf Bank lowered to Dh15.20.

“No new news so no new buyers. All of yesterday’s gains given back as investors are getting increasingly edgy about fourth quarter results and Dubai World’s debt restructuring,” Matthew Wakeman, managing director for cash and equity at EFG Hermes told Khaleej Times.

“Sellers are pricing in a gloomy picture from upcoming earnings and Dubai World restructuring and I don’t think that will be the case and as such both markets are offering attractive entry points if you have an investment horizon of more than a few days,” Wakeman said.

Dubai’s index has declined 7.9 per cent this month as oil fell and investors sought clarity about Dubai World’s debt obligations.

“Investors are not willing to pick up shares now before company earnings come out,” said Vyas Jayabhanu, head of Al Dhafra Financial Brokerage LLC.

“We do not expect the market to maintain momentum and oil is down, so there’s no positive input to prompt investors to really buy any shares.”

“People are eyeing Saudi results and are expecting the same for UAE companies, which is increasing the negativity,” said Chamel Fahmy, Beltone Financial regional senior sales trader. Saudi Arabia’s bank earnings have broadly missed estimates, although the kingdom’s investors have taken lenders’ increased provisions as a positive, enabling banks to start afresh in 2010.

In regional markets, Qatar’s DSM-20 Index advanced 0.7 per cent to 6,803 points, Bahrain’s measure slipped 0.3 per cent to 1,465 points, while the Kuwait Stock Exchange Index increased 0.2 per cent to 7,012 points. Oman’s MSM-30 Index also rose 0.05 per cent to 6,477 points.


With inputs from agencies

More news from Business