x Abu Dhabi, UAEFriday 28 July 2017

Abu Dhabi shares edge up, Dubai dips

Markets Update:Traditionally, sharp swings in stock values without much explanation occur at the end of the week or before a major holiday - not at the start of the first full week of trading after Ramadan, as they did today.

The Dubai Financial Market General Index declined 0.8 per cent, its biggest one-day decline in three weeks. Jeff Topping / The National
The Dubai Financial Market General Index declined 0.8 per cent, its biggest one-day decline in three weeks. Jeff Topping / The National

Big moves for small stocks affected markets in the UAE in the first full week of trading after Ramadan, while optimism over stimulus efforts in the United States petered out.

The Dubai Financial Market (DFM) General Index declined 0.8 per cent to 1,573.30, its biggest one-day decline in three weeks. The Abu Dhabi Securities Exchange (ADX) General Index edged higher by 0.2 per cent to 2,601.13.

Volumes recovered after the end of Ramadan and the value of stocks traded on the capital's market increased to their highest level since May.

But more than 75 per cent of the volume on the ADX was fuelled by shares of Commercial Bank International (CBI), a rarely traded stock that lost 1.9 per cent to Dh1.03.

Marwan Shurrab, the chief trader at Gulfmena Alternative Investments, said there was no clear reason behindthe fall of CBI shares traded. "It's not usually a liquid stock and it doesn't usually contribute much to market turnover."

A purchase of 500 shares in National Takaful Company, known as Watania, sparked a 9.1 per cent increase in the company's share price to Dh1.07.

In Dubai, Deyaar Development led the market downwards, losing 8.5 per cent to 37 fils per share following a 13.3 per cent rise on Thursday. Other property-linked shares also fell, including Emaar Properties, Union Properties and Drake & Scull International.

Egyptian equities rose after concerns about the country's creditworthiness eased. The EGX30 rose 0.51 per cent to 5,242.47.

Markets were a mixed bag elsewhere in the Arabian Gulf, with the Saudi Tadawul fell marginally to close at 7,104.19, retreating from the highest level since May after traders priced in expectations of stimulus measures in the US.

ghunter@thenational.ae