x Abu Dhabi, UAEWednesday 26 July 2017

Profit taking, not pessimism, subdues UAE bourses

Markets Update: Markets are subdued and floating in and out of the red this morning in what analysts have said is an indicator of natural profit taking by investors, and not falling optimism.

Markets are subdued and floating in and out of the red this morning in what analysts have said is an indicator of natural profit taking by investors, and not falling optimism.

The Dubai Financial Market General Index has nudged back into the black this morning, up 0.07 per cent to 1,668.56, after opening down 0.87 per cent this morning. The bourse has not broken the 1,700 mark since last Monday.

However the index has risen 22 per cent during the year to date, and analysts said a dip on the DFM is most likely to be investors banking some profits.

"What is happening to the market now must be factored with the rise that has been happening in the last month. The market is showing typical signs of some profit taking," said Fadi al Said, senior fund manager at ING Investment in Dubai.

"Some stocks which have risen without justification could also be correcting," he said.

Arabtec, which has risen 84 per cent so far this year, is among the fallers this morning, down 0.34 per cent to Dh2.92. After rising for two months on speculation of a takeover the company's share price tumbled when Aabar announced it had bought a 5.28 per cent stake in Arabtec.

The Abu Dhabi Securities Market General Index dropped 0.19 per cent to 2,609.77 this morning. It has been floating around the 2,600 level for about 2 weeks.

Globally, the back drop continues to point towards a growing world economy. Oil is moving back towards $126 a barrel after positive indicators from the US and China, the world's biggest oil consumers.

 

lmiller@thenational.ae