ID :
24842
Thu, 10/16/2008 - 15:05
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https://oananews.org//node/24842
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UAE bourses reverse gains as investors book profits
Dubai, Oct 16, 2008 (WAM) - After two consecutive days of strong gains, UAE markets reversed course on Wednesday, as desperate investors resorted to early profit booking after last week's drains according to a report in “Gulf News.”
More than Dh24 billion of market capitalisation was wiped away following the four per cent decline recorded by the Emirates Securities general index which stood at 4,142.65 by the close.
"The market decline has nothing to do with the UAE, as investors are only following the trend in international markets where corporate earnings is now the concern," said Khalid W. Kurdieh, chief executive of Mashreq Securities.
In Dubai, the benchmark index retreated 7.44 per cent to 3,427.87 on account of the tangible losses recorded by the leading shares.
Emaar Properties fell by 9.88 per cent to 6.11, a few notches above the maximum limit down of ten per cent, followed by Deyaar Development, which fell 9.59 per cent to Dh1.32.
The real estate sector reported the worst performance dragging the sub-index down 9.85 per cent. All of the 32 traded shares ended the session in the red, with the transport, banking and utilities sub-indices retreating substantially.
"The markets' momentum will continue to react aggressively to the official announcements at this stage, and the drop is natural given the nature of retail investors, who tend to be emotional," Kurdieh said.
In Abu Dhabi, listed companies reacted positively to the market's request for early disclosures, where Union National Bank (UNB) and Finance House (FH) posted their third quarter results. Nevertheless, early profit booking was also the norm there taking the general index down 2.13 per cent to 3525.82.
Both UNB and FH reported an increase in their assets by 34.9 and 24 per cent respectively, negating the claim that the flight of foreign funds had negatively affected the assets of local banks. UNB advanced 8.3 per cent to Dh4.90, while FH gained 4.91 per cent to close at Dh11.60.
"Early disclosure will prevent rumours from spreading during such critical times," Rashid Al Baloushi, deputy chief executive of Abu Dhabi Securities Exchange (ADX) said.
Other leading banks ended the session in red, with the National Bank of Abu Dhabi retreating 3.66 per cent to Dh11.50, and Abu Dhabi Commercial Bank falling 2.78 per cent to Dh2.80. Only a handful of the traded companies recorded gains 29 out of the 37 traded shares ended the session in the red.
More than Dh24 billion of market capitalisation was wiped away following the four per cent decline recorded by the Emirates Securities general index which stood at 4,142.65 by the close.
"The market decline has nothing to do with the UAE, as investors are only following the trend in international markets where corporate earnings is now the concern," said Khalid W. Kurdieh, chief executive of Mashreq Securities.
In Dubai, the benchmark index retreated 7.44 per cent to 3,427.87 on account of the tangible losses recorded by the leading shares.
Emaar Properties fell by 9.88 per cent to 6.11, a few notches above the maximum limit down of ten per cent, followed by Deyaar Development, which fell 9.59 per cent to Dh1.32.
The real estate sector reported the worst performance dragging the sub-index down 9.85 per cent. All of the 32 traded shares ended the session in the red, with the transport, banking and utilities sub-indices retreating substantially.
"The markets' momentum will continue to react aggressively to the official announcements at this stage, and the drop is natural given the nature of retail investors, who tend to be emotional," Kurdieh said.
In Abu Dhabi, listed companies reacted positively to the market's request for early disclosures, where Union National Bank (UNB) and Finance House (FH) posted their third quarter results. Nevertheless, early profit booking was also the norm there taking the general index down 2.13 per cent to 3525.82.
Both UNB and FH reported an increase in their assets by 34.9 and 24 per cent respectively, negating the claim that the flight of foreign funds had negatively affected the assets of local banks. UNB advanced 8.3 per cent to Dh4.90, while FH gained 4.91 per cent to close at Dh11.60.
"Early disclosure will prevent rumours from spreading during such critical times," Rashid Al Baloushi, deputy chief executive of Abu Dhabi Securities Exchange (ADX) said.
Other leading banks ended the session in red, with the National Bank of Abu Dhabi retreating 3.66 per cent to Dh11.50, and Abu Dhabi Commercial Bank falling 2.78 per cent to Dh2.80. Only a handful of the traded companies recorded gains 29 out of the 37 traded shares ended the session in the red.
