DFM falls on weak investor appetite

ABU DHABI INDEX DECLINES 0.39% AS BLUE CHIP SHARES FACE PRESSURE

The UAE’s main equity indices ended nearly flat yesterday amid weak investor appetite and as share prices of many of the blue chips declined.

The Dubai Financial Market (DFM) index fell 0.26 per cent to 3,026.32 as powerhouses Emaar and Dubai Islamic Bank, both among the most actively traded that day, fell 1.46 per cent and 0.37 per cent respectively.

“The UAE markets are facing lack of interest from the regional and global investors as most investors are now focusing on Saudi Arabia, which has many short-term catalysts,” said Sanat Sachar, equity research analyst at Al Mal Capital. “Pressure on real estate stocks also continues.”

Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index fell 0.39 per cent to 4,671.03.

Tariq Qaqish, managing director of Mena Corp’s asset management division, said that there was frustration among investors and fund managers due to the performance of the UAE market, and that was keeping trade values weak.

“There were a few stories that have affected this including the change of dividend policies in some of the blue chip companies such as Damac and Emaar. Continuous capital increases in lowliquidity environment is also drying investors’ pockets,” he said.

Qaqish pointed that such issues investors have with the market were hurting even stocks with attractive valuations.