Dubai index experiences sharpest fall in 1 month

EMIRATES NBD, DAMAC BOTH RETREAT, WEIGHING ON SENTIMENT

The Dubai index fell more than 1 per cent yesterday, its sharpest fall since July 2, as shares like Emirates NBD and Damac Properties weighed on sentiment.

The Dubai Financial Market General index closed 1.05 per cent lower at 2,889.45.

The index has shed more than 11 per cent since the start of the year.

“Weakness on DFM has been seen from the beginning of this year triggered by multiple capital restructure programmes and poor corporate governance,” Issam Kassabieh, senior financial analyst in the Research Department at Menacorp, told Gulf News.

“The newest factor has been the fresh US sanctions on Turkey which have left plenty of room for speculation especially on Emirates NBD’s exposure through its acquisition of Denizbank, which in turn has weighed on the Dubai Index.”

Emirates NBD closed 1.7 per cent lower at Dh9.83.

Damac Properties closed 3 per cent lower. Emaar Properties closed 1.13 per cent lower to Dh5.24, and was the mostactive stock in trade.

“Emaar Properties’ performance is related to its dividend payout which has been seen as 3,000 2,975 2,950 2,925 2,900

2,875 12. Jul 16. Jul ‘poor’ compared to its performance. The stock however remains undervalued from a sum of the parts valuation especially with the growth of Emaar Malls and Emaar Development as well as the hospitality business,” Kassadbieh said.

Among worst performers

Emaar Properties has been one of the worst performer on the Dubai index and the shares have shed 31 per cent of its value in the past one year compared to 15 per cent fall on Dubai index.

Drake and Scull fell 5.6 per cent to close at Dh0.471.

“Increased volume in DSI on the selling side is hinting at further decline. The share may target Dh0.38 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, who had a bearish view on the stock at Dh0.554.

The Abu Dhabi Securities Exchange general index closed 0.56 per cent lower at 4,844.55.

Union National Bank closed 2.86 per cent lower at Dh3.73. Dana Gas ended 0.88 per cent lower at Dh1.16.

“The trend remains bullish in Dana Gas and the stock is headed towards the next target at Dh1.25 in the near term,” Prakash said.

Elsewhere in the Gulf region, Saudi Arabia’s Tadawul index was 0.71 per cent lower at 8,117.89.

The Muscat MSM 30 index closed 0.56 per cent lower at 4,406.35.

The Qatar exchange index closed 2.55 per cent lower at9,635.00.

The Bahrain all share index closed 0.09 per cent lower to 1,348.36. The Kuwait index closed 0.45 per cent lower to 5,256.87.