Dubai index wipes off 3 days of gains

DSI FALLS 3.28% TO DH1.18 ON TALK THAT IT DIDN’T GET A NOD TO RAISE CAPITAL

The Dubai index wiped off three days of gains yesterday, weighed by weakness in Emaar Properties, with the Dubai Financial Market General Index (DFMGI) retreating 1.15 per cent to 3,030.75, after gaining 1.3 per cent in the previous three sessions.

Emaar Properties closed 1.73 per cent lower at Dh5.69 while Drake and Scull (DSI) closed 3.28 per cent lower at Dh1.18 on reports that the company didn’t get a nod to increase capital.

“Investors have clearly lost all faith in DSI stock as the it fell into the ‘limit-down abyss’ in spite of the BOD [board of directors] proposing the company go forward with a wellpriced convertible sukuk issuance rather than a capital increase through a secondary offering at a low end of Dh1.25 per share,” Menacorp said.

Emaar Malls closed at Dh2.23, up 0.45 per cent.

“Emaar Malls’ recovery is facing stiff resistance at the trendline and the neckline barrier of Dh2.24, may attract profit taking and force it go lower towards the support zone at Dh2 [ex-dividend price],” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, said.

Dubai Investments fell 1.58 per cent to close at Dh1.87.

The Abu Dhabi Securities Exchange (ADX) General Index closed 0.08 per cent higher at 4,673.31.

Taqa closed 2.9 per cent higher to end at Dh1.4 while RAK Properties gained 1.52 per cent to close at Dh0.67.

Elsewhere in the Gulf region, Saudi Arabia’s Tadawul index closed 0.67 per cent lower to end at 8,146.80. The Qatar exchange index retreated 1.07 per cent to close at 9,014.32.