Low trading volumes were to blame for a sluggish week at Dubai’s Financial Market (DFM) as the general index fell by 2.02 per cent.
In sharp contrast to the beginning of July when real estate firms, led by construction powerhouse Arabtec, were dragging the market confidence of the entire DFM through its turmoil, changes have been minimal across the sector throughout August.
Moreover, news broke on Tuesday (August 5) that Emaar Properties had achieved a H1 profit increase of 41 per cent and that the developers would also be listing their Malls Group separately on the DFM in an offering worth $9 billion. While this would be the largest local IPO since 2007, it had very little impact on Emaar’s performance, which closed the week on a 0.20 per cent high.
An article published on AMEInfo last week suggested that the opening of Saudi’s Tadawul to foreign investors could redirect capital away from the UAE’s more volatile markets, and, as such, local financial authorities will be hoping that recent low volumes don’t become a trend.
Throughout the week, AED455.8 million was traded on the DFM.
Arab Insurance Group (Insurance) 25 per cent
National Industries Group Holding (industrials)15.33 per cent
International Financial Advisors (Investment) 8.39 per cent
Ekttitab Holding Company (Investment) 4.50 per cent
National General Insurance Company (Insurance) 10 per cent
Gulf Mineral Water (Consumer Staples) 9.71 per cent
National Central Cooling Co (Services) 5.14 per cent
Dubai Financial Markets PJSC (Investment) 4.66 per cent