UAE investors wait for signs of market stability

The Abu Dhabi Securities Exchange was little changed on Monday amid low volumes. The bourse slipped 0.02 per cent to 2,600.02 with real estate and telecommunication stocks weighing on earnings. Etisalat, the company with the largest weighting on the ADX, lost 0.49 per cent to Dh10.2, real estate developer Aldar Properties declined 0.83 per cent to Dh1.19 and Sorouh fell 0.85 per cent to Dh1.17. Abu Dhabi Commercial Bank, the UAE's third largest lender by assets, tumbled 0.66 per cent to Dh3 and Green Crescent Insurance Company dropped 3.45 per cent to Dh0.56. "After a high volatility week in UAE markets last week, investors are waiting for news from Europe and US markets and searching for signs of market stability," Ashraf Abu Shakra, equity portfolio manager at Al Mal Capital, told Bloomberg. "They are also looking for a base to start accumulating from a new foundation," he added. Article continues below The International Fish Farming Holding Company led losses, falling 10 per cent to Dh4.59. The top gainer was the National Corporation for Tourism and Hotels, which climbed 9.92 per cent to Dh6.65. Of the 32 companies traded, 13 rose, 12 fell and and seven closed unchanged. Some 47 million shares worth Dh73.9 million were traded. Saudi Arabia's Tadawul All Share Index gained 0.34 per cent but it was a quiet day across the region with little movement on any of the Gulf's other indexes. — The Dubai Financial Market (DFM) General Index declined for the first time in four sessions yesterday as a sense of calm prevailed across global equity markets following last week's turmoil. The DFM lost 0.56 per cent to 1,470.39 ahead of a meeting today between French and German officials over the adoption of so-called Eurozone bonds. Property bellwether Emaar Properties, which said last week that second quarter hospitality revenues rose 20 per cent year-on-year, slipped 0.35 per cent to Dh2.81. Dubai Islamic Bank, utilities firm Tabreed and real estate developer Deyaar also weighed on earnings. Du, the UAE's second largest telecommunications firm, tumbled 1.31 per cent to a five month low of Dh3.02. "Investors are cautious and are awaiting the results of the meeting between Germany and France with regard to what tools and how much the bailout package will be," Nabeel Farhat, a partner at Abu Dhabi-based Al Fajer Securities, told Bloomberg. "If results of the meeting are positive, then we might see a follow-up buying in the Gulf stock markets," he added. Losses were capped by gains at ports operator DP World, Islamic mortgage provider Tamweel, investment bank Shuaa and property firm Drake and Scull International. Construction firm Arabtec closed flat. Of the 22 companies traded, seven rose, 12 fell and three closed unchanged. Some 33.7 million shares worth Dh51.1 million were traded.