UAE indices diverge from global trend

SURGING EMIRATES NBD SHARES HELP DUBAI INDEX TO STAY ABOVE 3,000

UAE indices closed lower yesterday, diverging from a firm overseas trend, on continued selling even as the Dubai index fell to a fresh 52-week low on lack of interest despite attractive valuations.

The Dubai Financial Market General Index shed 0.32 per cent to close at 3,092.8, after an intra-day low of 3,086.62.

“We are not seeing interest in UAE stocks although [they are] trading at a reasonable valuations compared to regional and emerging markets, due to weak investor confidence and most importantly liquidity,” Tariq Qaqish, managing director of asset management at Menacorp, said.

“[The] market is approaching strong support levels and we expect to see some medium-term buyers,” Qaqish said.

Emaar Properties closed at Dh5.71, down 1.55 per cent while Emaar Development eased 0.19 per cent lower to close at Dh5.39. Deyaar Properties was 2.08 per cent lower at Dh0.470, Gulf Finance House fell 1.41 per cent to Dh1.40, and Dubai Entertainments fell 7.8 per cent to Dh0.47 after the company said it plans to tap new funds from Meraas and issue a Dh1.2 billion convertible instrument.

Dubai Islamic Bank (DIB) eased 0.76 per cent to Dh5.25. However, surging Emirates NBD shares, which closed 4.85 per cent higher at Dh10.8, kept the downside of the index limited, keeping the Dubai index above the 3,000 mark.

The Abu Dhabi Securities Exchange General Index shed 0.84 per cent to end at 4,611.75. Union National Bank fell 9.63 per cent to Dh1.22, while Taqa was down 6.25 per cent to Dh0.75. Eshraq Properties closed 5.33 per cent lower at Dh0.71.

Saudi Arabia’s Tadawul index closed 1.08 per cent higher to 7,942.54. Dar Alarkan Real Estate Development Co eased 2.16 per cent lower to 12.32 Saudi riyals. Alinma closed 0.78 per cent higher at 20.68 riyals while Saudi Kayan Petrochemical Co gained 1.56 per cent to close at 13.66 riyals.

The Qatar Exchange index closed 0.21 per cent lower at 8,693.98. The Muscat MSM 30 index rose 0.02 per cent to 4,759.29 while the Bahrain All Share Index closed at 1,327.33, up 0.13 per cent.