Dubai: UAE indexes moved in opposite directions as Dubai stocks ended in the negative for the second consecutive day amid profit booking on a day when volumes dropped big and Abu Dhabi marginally moved up.
Dubai’s benchmark stock index slipped 0.58 per cent to end at 4152.39 as volume traded plunged 53.47 per cent from 1.45 billion shares to 674.73 million. The value of traded shares decreased to Dh1.74 billion from Tuesday’s Dh2.96 billion. Of the 31 stocks traded, 17 declined, 11 advanced and three remained flat.
“We did see weakness in Dubai for a second straight day but thus far it’s been rather tame profit booking which is quite natural given the gains year to date,” said Amer Khan, director at Shuaa Asset Management. The DFM Index is up 24.62 per cent this year, among the best in the world.
In Dubai, Emaar Properties saw some profit booking after its stocks had jumped 3.39 per cent on Tuesday, post its fourth quarter earnings announcement. The share price of the biggest developer of the Middle East dropped 0.79 per cent to Dh8.77.
Others which retreated include Dubai Islamic Bank, Union Properties, Deyaar Development and Air Arabia, which fell 2.21 per cent, 1.04 per cent, 1.55 per cent and 1.89 per cent respectively. However small declines such as that of last two days are not a cause for worry and in fact could be entry points for investors wanting to enter or re-enter the market.
“Although consolidation or a slight pull back isn’t unexpected at this stage there are a lot of catalysts behind these gains including rather solid broad based earnings thus far as well as the MSCI upgrade in May,” Khan said.” These should also act is draws for medium to long term investors should there be a meaningful retracement.”
In the capital, the stock gauge ADX Securities Index was up 0.26 per cent to 4883.18. The turnover of 214.42 million shares stood at Dh514.97 million. Share prices of 20 stocks increased, 15 decreased and four remained unchanged.
Among the most active stocks, Aldar fell 0.91 per cent to Dh3.27; Dana Gas dropped 2.25 per cent to Dh0.87 and Gulf Cement plunged 6.77 per cent to Dh1.79, erasing almost the entire gain (7.87 per cent) of the previous session.
Among the gainers were etisalat, which climbed 1.27 per cent to Dh11.95 and Waha Capital was up 0.36 per cent to Dh2.82.