Abu Dhabi bourse rises, Dubai index retreats

August, 24th 2011

Dubai: The Dubai Financial Market (DFM) index retreated on Wednesday, losing close to half a per cent as Moody's Investors Service cut Japan's credit rating by one step, US' economic woes seemed to be intensifying and on concerns over Europe's sovereign debt and its banks' liquidity issues.

Investors are betting the US Federal Reserve Chairman Ben Bernanke would unleash a third round of quantitative easing (QE3) to shore up flagging market confidence and that indication may come as early as Friday.

Global markets saw a sell-off following the downgrade of US debt by Standard & Poor's earlier this month which was accentuated by indications of faltering global economic recovery.

The DFM index closed at 1,457.34, down 0.11 per cent. Around 34.54 million shares, cumulatively worth about Dh47.31 million were traded on the stock market.

"The trading volume on the Dubai market was really low today as the economic issues in the US and Europe and the Japanese downgrade by Moody's weighed on investor sentiments," said a market analyst. However, the market index managed to remain above its strong support level of 1,429, which is the low of February 2009.

According to analysts, the Dubai market would turn bullish only if its index breaks above 1,640 on high volume.

About 5.68 million shares of real estate major Emaar, cumulatively worth around Dh15.71 million were traded on the market yesterday, its stock closing 0.36 per cent lower at Dh2.76.

Abu Dhabi bourse

The Abu Dhabi Securities Exchange (ADX) general index rose 0.18 per cent on Wednesday led by industrial, energy, telecommunications, real estate and banking stocks.

The ADX general index closed at 2,582.13 with the trading volume continuing to remain low, although investors bought into some select shares due to their attractive valuations.

"There has been some interest in Abu Dhabi banking scrips as some of the banks are trading at attractive multiples. We expect a brief rally in banking stocks after Eid as more investors come to the market," said a market analyst.

According to analysts, the Abu Dhabi market index has found a key found support level at 2,550. Despite downside risks, the market may rally to 2,630 in the near term, they say.

Around 35.9 million shares cumulatively worth abon the Abu Dhabi stock market. Of the 29 company stocks traded, as many as 15 advanced, while 4 declined and 10 closed unchanged.

The stock of Abu Dhabi real estate major Aldar Properties closed 0.84 per cent higher at Dh1.20. As many as 8.22 million Aldar shares worth a total of about Dh9.84 million changed hands on the market.

The top gainer on the Abu Dhabi market yesterday was Sudan Telecommunication, its shares rising 9.63 per cent to Dh1.48 by the close of trading. national Marine Dredging Co was the day's top loser, its stock closing 9.91 per cent lower at Dh10.

Source: Gulfnews