Dubai - Arabstoday
The Dubai Financial Market (DFM) index bounced into the positive territory yesterday as Australia’s central bank cut interest rates by 25 bps amid speculation other central banks in Asia will follow suit to stimulate growth in their flagging economies. Market analysts expect the European Central Bank (ECB) and the US Federal Reserve to pump more money into the system as the Euro zone teeters on the brink of a recession, while the US economy is slowing. The volume of shares traded on the Dubai market, however, remained thin due to a lack of risk appetite among investors. The global financial markets have all but wiped out the gains made in 2012 on fears of a disorderly sovereign debt default by Greece. Analysts say the regional markets are trading with a negative bias on low volumes as international oil prices which are a major support to the region’s economy are falling. Global oil prices have fallen more than 10 per cent since April and could fall further given a deepening Euro zone sovereign debt crisis. The DFM index closed yesterday at 1,449.80, up 0.89 per cent. Around 89.36 million shares, cumulatively worth about Dh89.79 million were traded on the stock market. About 8.81 million shares of Emaar, cumulatively valued at around Dh24.71 million were traded on the market yesterday, its stock closing 2.54 per cent higher at Dh2.83. Of the 25 company stocks traded yesterday, 17 rose, while four fell and four closed unchanged. The day’s top gainer was Gulf Finance House, its shares closing 4.55 per cent higher at Dh0.551. Ekttitab was the day’s main loser, its shares dropped 1.57 per cent to close at Dh1.25. Shares of Emaar were the most traded by value while Gulf Finance House’s stock was the most traded by volume on the Dubai market yesterday. Abu Dhabi The Abu Dhabi Securities Exchange (ADX) general index jumped back into the positive territory yesterday on optimism generated by Australia’s central bank cutting its benchmark lending rate by 25 bps to stimulate economic growth. However, the volume of trade on the market remained thin as a sharp fall in global oil prices has put major investors on the sidelines for the time being. Abu Dhabi market, however, is backed by the solidity of its listed banks and the emirate’s oil exports which happens to be a major source of government’s revenues. Analysts say the market will trade in a range with a downside bias until greater clarity on how Europe is going to tackle its debt problems emerges. The ADX general index closed yesterday at 2,433.39, up 0.45 per cent with the rise being led by real estate and banking sub-indexes. Blue chip real estate stocks such as Aldar Properties and Sorouh Real Estate, rose significantly. Yesterday, around 80.25 million shares cumulatively worth about Dh99.51 million traded on the Abu Dhabi stock market. Of the 30 company stocks which traded, 14 advanced, while 7 declined and 9 closed unchanged. The potential merger between Aldar and Sorouh remains a catalyst for the market, as and when some concrete details on this deal emerges. The fears of Greece’s exit from the Euro zone and slowing global economic growth are major market concerns as are the possibilities of a hard landing for China in the coming months on the back of falling orders from its main markets - Europe and the US, where economic growth is also showing signs of tapering off. The stock of Aldar closed yesterday 3.85 per cent higher at Dh1.1. About 22.80 million shares of Aldar cumulatively worth about Dh24.53 million changed hands on the market. The top gainer on the Abu Dhabi market yesterday was Arkan, its shares rising 7.89 per cent to Dh0.83 by the close of trading. Bildco was the day’s top loser, its stock closing 9.64 per cent lower at Dh0.75. The shares of Abu Dhabi’s real estate major Aldar were the most traded in terms of value and volume on the Abu Dhabi market yesterday.