x Abu Dhabi, UAESaturday 20 January 2018

Eshraq brings some relief but hesitancy continues

Trading was lukewarm on the Abu Dhabi Securities Exchange and Dubai Financial Market yesterday.

Stocks of Arabtec Holding rose 1.49 per cent to Dh1.36.
Stocks of Arabtec Holding rose 1.49 per cent to Dh1.36.

The addition of a new stock to trading failed to rouse UAE markets from their post-Ramadan hibernation, with low volumes persisting after Eshraq Properties began its first day of trading.

The Dubai Financial Market General Index was flat at 1,467.74, while the Abu Dhabi Securities Exchange General Index fell 0.1 per cent to 2,576.69.

Although there was scant activity on the broader markets, Eshraq, an Abu Dhabi property developer, ended the day at 47 fils per share, having risen to 67 fils before noon.

More than 10 million of the company's shares traded hands, equivalent to about one fifth of the total volume on the Abu Dhabi exchange.

Stocks of Arabtec Holding rose 1.49 per cent to Dh1.36. Tamweel rose 0.8 per cent to Dh1.14.

Air Arabia's stock fell 0.7 per cent to 62.5 fils as the price of oil surged, with Brent crude futures advancing US$2.22 to $113.76.

"Investors are still hesitant to add exposure to the equity market while there are uncertainties in the global environment, while we see value in the long-run for the UAE stock market," said Tariq Qaqish, a fund manager at Al Mal Capital.

"Sentiments are still weak and affected by the ongoing financial crisis and the lack of local liquidity."

Elsewhere in the Gulf: Qatar and Oman rose, while Kuwait and Bahrain fell. Saudi Arabia's market was closed for the weekend.