The Dubai Financial Market (DFM) index fell back in the negative territory yesterday after the euphoria in global markets generated by Spain getting a 100 billion euro bailout from fellow Euro zone member countries to help it rescue its banking sector fizzled out and reality dawned on how sovereign debts in Europe continue to rise and practically nothing is being done to reduce their debt burden.
“The market in Dubai has become co-related with the movement in global equity markets. Today was a down day,” said a local stock trader.
The day saw a major decline in the volume and value of shares traded on the market as risk aversion among investors increased.
The DFM index closed at 1,468.82, down 0.96 per cent. Around 77.5 million shares, cumulatively worth about Dh87.56 million were traded on the stock market.
As many as 5.6 million shares of real estate major Emaar, cumulatively valued at around Dh15.88 million were traded on the market yesterday, its stock closing 1.04 per cent lower at Dh2.85.
Of the 25 company stocks traded yesterday,only 4 rose, while 20 fell and 1 closed unchanged. The day’s top gainer was AlMadina, its shares closing 5.13 per cent higher at Dh0.799. AlSalamsudan was the day’s main loser, its shares dropped 6.58 per cent to close at Dh1.42.
Shares of Tabreed were the most traded by value and volume on the Dubai market yesterday.
The Abu Dhabi Securities Exchange (ADX) general index yesterday reversed its gains and fell 0.64 per cent in line with bearish global market sentiments.
“The investor sentiments are currently being driven by global macro-indicators. The Spanish bailout package which drove global equity markets on Monday petered off today and what we saw today was a sell off,” said a local stock trader.
Analysts say the market will trade in a range until greater clarity emerges on how Greece’s sovereign debt situation will be handled by Europe and what the outcome of its elections due on June 17 is.
The ADX general index closed yesterday at 2,447.57, the decline being led by real estate stocks. Blue chip real estate stocks such as Aldar Properties and Sorouh Real Estate fell by more than 3.5 per cent each.
Yesterday, around 29.35 million shares cumulatively worth about Dh47.68 million were traded on the Abu Dhabi stock market. Of the 25 company stocks traded, only 6 advanced, while 15 declined and 4 closed unchanged.
The potential merger between Aldar and Sorouh, however, remains a catalyst for the market.
The stock of Abu Dhabi’s real estate major Aldar closed yesterday at Dh1.10. About 8.46 million shares of Aldar cumulatively worth about Dh9.32 million changed hands on the market.
The top gainer on the Abu Dhabi market yesterday was Watania, its shares rising 1.98 per cent to Dh1.03 by the close of trading. National Bank of Umm Al-Qaiwain was the day’s top loser, its stock closing 9.68 per cent lower at Dh1.68.
The shares of regional telecommunications major Etisalat were the most traded in terms of value while Sorouh’s shares were the most traded by volume on the Abu Dhabi market yesterday.