Markets Update: Arabtec, the Dubai developer, continued to attract investors this morning despite warnings from analysts the stock is significantly overpriced.
Arabtec continues rise despite analysts warnings
Arabtec, the Dubai developer, continued to attract investors this morning despite warnings from analysts the stock is significantly overpriced.
Shares were up 4 per cent just after opening, before falling back down to 2.9 per cent in early trading to Dh3.58. Analysts have said the stock is overvalued at this level.
Yesterday Aabar Investments, the Government investment vehicle, announced it had upped its stake in the builder to 10.45 per cent, sending the stock 15 per cent higher, the daily limit for a share price rise.
DFM Company, the publicly listed bourse, was down 2.44 per cent in early trading in a correction of yesterday's stellar gains, which saw the stock close up 6 per cent.
Abu Dhabi National Energy Company, known as Taqa, fell 2.99 per cent this morning as oil fell for a second day in New York following a report showing an increase in US crude stockpiles.
Telecoms companies were the early gainers on the Abu Dhabi Securities Exchange (ADX) General Index. Sudan Telecoms was up 5.84 per cent. Emirates Telecoms rose 0.11 per cent.
The ADX and the Dubai Financial Market General Index were both down in early trading. The ADX was 0.13 per cent lower at 2,560.36. The Dubai bourse was down 0.35 per cent to 1,687.72.
Global stocks hit a wall of red as markets fell across Asia, Europe and the United States in reaction to signals from the US Federal Reserve that it will refrain from further stimulating the economy by pumping in more cheap money.
Shares extended declines after Japan's Nikkei 225 Stock Average slipped below the key level of 10,000 for the first time in two weeks, triggering a deeper selloff.
US Federal Reserve minutes indicated central bankers saw no need for more monetary stimulus unless economic growth slows.