Dubai stocks ended 1.57% lower
Dubai Financial Market General Index (DFMGI) wrapped up Tuesday’s session remarkably lower amid lackluster trade, losing modest ground it gained yesterday. The index eased off 1.57% to finish at 1661.54 points. Speculations of low corporate profits are mainly behind the weak trading activity.
Commenting on market performance, Kifah Maharmeh, General Manager of Al Dar Shares & Bonds, said traders are no longer cautious about corporate annual results, as they are convinced of its temporary effect on capital markets, especially amid longstanding recession.
He expects this trend to control the markets until liquidity drives appear, as it could encourage more traders to access the market.
Al Fajr Securities forecasts annual profits of national companies listed on DFM and ADX to hover between AED 38.6 – 42.7 billion. Accordingly, average corporate earnings for FY09 are seen 20% lower compared to AED 50 billion in FY08, said Maha Kanz, analyst at Al Fajr.
Traders exchanged almost 162.3 million shares today, compared to 178.9 million on Monday. Turnover neared AED 283.4 million, compared with AED 370.2 million. Number of transactions reached 3949.
Traded stocks ended mostly in the red. Tabreed came ahead of the 22 decliners of today, ending 3.90% lower at AED 0.74.
Arabtec followed, losing 3.29% to AED 2.35. It led the top actives in terms of trading volume, as around 36.5 million of its shares were exchanged, at a total value of AED 86.7 million.
The bellwether Emaar ranked third with a retreat of 3.21% to AED 3.32 More than 26.6 million of the developer’s shares were traded, at a total value of AED 89.6 million, leading most actives by turnover.
Shares of market operator Dubai Financial Market Co. (DFMC) declined 2.42% to AED 1.61, as almost 15.5 million shares changed hands at a gross turnover of up to AED 25 million.
On the flipside, Gulf Finance House (GFH) led the three advancers of today, closing 6.78% higher at AED 1.26. It recorded a lifetime strong trading volume of more than 24 million shares.
GGICO was the second gainer with a rise of 1.03% to AED 0.98, then Al Salam Bank Sudan that rose 0.81% to AED 2.48.
Rounding up sectors, seven declined with Utilities in the lead, plunging 3.90%. Real Estate and Constriction followed, dropping 2.93%, then Investment and Financial Services that fell 1.92%. Tailing the list, Transportation inched down 0.38%.
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