Daman's Arabian Programmed Trading Fund registers 23.72% growth entering month 12

Launched in March of 2005, the results included a decline of .81% in February.

Commenting on results, Shehab Gargash, Managing Director of Daman said:

"All of last week we went through a volatile period in which we witnessed significant negative performance throughout the GCC markets which are under pressure from the recent round of IPO's. This, coupled with margin call selling consequently generated an overall negative sentiment along with the general expectation that profit growth will be lower than in 2005."

When asked about the future, Mr. Gargash continued: "My belief is that the implication is on price in the short term. The quality of corporations in the region is stellar and our belief is that the fundamentals are solid. Much in the future will depend on the announcement of Q1 results after March 31."

Amid these market conditions, Daman announced that their flagship Daman UAE Value Fund also turned in a negative 5.80% performance in February. Mr. Gargash commented further: "Last July, in a boom period, we were widely
quoted as being "negative" for saying that the markets would be volatile towards the end of the year.

In fact, there has been an overall decline of over 36% in the DFM since last November through end February. In the same period, the ADSM declined 23% and the NBAD index-which serves us all as a UAE benchmark-has fallen over 20%. Last week drove the figures to unexpected lows.

Obviously, we are once again living in the peaks and troughs of a market that is rapidly changing and maturing. This negative period will ultimately yield value in lower price levels and ratios. I believe it will also lead to better valuations in the future. Liquidity levels will determine the direction of the markets in the period ahead. We see this as an opportunity for buyers who take a long view".