DFM and ADX weighed down by crisis facing Eurozone
DUBAI INDEX DIPS 0.3%, ABU DHABI INDEX LOSES 0.8% AS IRAN ISSUE ALSO HAS AN EFFECT
The UAE’s equity markets ended in the red yesterday, albeit with small changes, with share prices of blue chips going down as the Greece crisis escalated with the European Central Bank refusing to grant more emergency loans for Greek banks.
The Dubai Financial Market (DFM) index fell 0.34 per cent to 4,042.03, while the Abu Dhabi Securities Exchange (ADX) general index slid 0.83 per cent to 4,679.96.
In Dubai, Amlak share prices went down 0.4 per cent as the company continued to top the market in terms of value traded, accounting for 28 per cent of total trade.
Arabtec also fell 1.55 per cent, Emaar declined 0.39 per cent, Gulf Finance House shed 2.43 per cent, Union Properties slid 1.64 per cent, and Dubai Islamic Bank dropped 0.89 per cent.
Saleem Khokhar, head of equities at the National Bank of Abu Dhabi’s asset management group, said the news coming out from Iran could also be affecting the UAE’s stock markets.
“It looks like there’s positive news flow from Iran that possibly by 30 June they could reach a deal. It’s difficult to say but it seems to be moving in the right direction, so that’s actually brought the oil price down a little bit, which had a knock-on effect on Saudi, Dubai, and Abu Dhabi, and that’s why you saw Saudi down a bit more aggressively,” he said.
Investor sentiment
Khokhar added that the investor sentiment is one of scepticism at the moment. However, the drop in share prices could present an opportunity soon for those looking to invest.
“We saw a bigger fall yesterday [Sunday]. Greece and its current situation is the primary factor, and it’s causing a lot of uncertainty, not just on our markets.
“Overall, valuations are becoming quite attractive, and we’re reaching levels that could become quite good for mediumto long-term investors,” he said.
In Abu Dhabi, National Marine Dredging Co. topped the gainers’ list with a 15 per cent increase, followed by Emirates Driving Company with 5.82 per cent, Methaq Takaful Insurance Co. with 4.41 per cent, and Dana Gas with 2.22 per cent.
Of the 35 stocks traded on the DFM, 24 edged lower, eight went up, and three remained unchanged.
Of the 30 stocks traded on ADX, 17 declined, seven advanced, and six remained flat.