x Abu Dhabi, UAEWednesday 26 July 2017

ADCB seeks 10% share buyback and blue chips dominate DFM

Markets Update: Blue chips and retail securities dominated thin trading in Dubai today as investors tried their hand at beating the market ahead of upcoming financial releases.

Abu Dhabi Commercial Bank has said it will seek shareholders approval to buyback as much as 10 per cent of its shares over six months, according to a statement to the Abu Dhabi bourse today.

Shareholders will vote on authorizing the board to buy back shares on April 24, according to the statement. The bank's share closed up 0.66 per cent to Dh3.03.

Blue chips and retail securities dominated thin trading in Dubai as investors tried their hand at beating the market ahead of upcoming financial releases.

The Dubai Financial Market General Index (DFM) saw turnover of about Dh230 million, a fall from recent highs this year of Dh600m to Dh800m.

Blue chips picked up most of the trades. Emar, up 4.04 per cent, Arabtec, up 3.78 per cent and Tabreed, gaining 6.85 per cent, contributed to almost half of all turnover on the index, according to analysts.

Marwan Shurrab, chief trader at Gulfmena Investments, says the focus on these stocks reflects the retail nature of the bourse.

"This was pure retail mentality with investors trying to play the market ahead of AGMs and final decisions on dividend distributions."

The DFM closed up 1.86 per cent to 1,683.18. The sentiment for tomorrow's session is positive, despite the fall in turnover in today's trading, Shurrab says.

An opposite reaction could be seen on the Abu Dhabi Securities Exchange. The bourse ended the day down 0.3 per cent to 2,566.92.

Even though it was the last opportunity to buy stock before Aldar pays out its dividend, investors reduced their holdings, sending shares in the company down 3.73 per cent to Dh1.29 a piece.

lmiller@thenational.ae