UAE markets were resilient yesterday after two major Abu Dhabi companies posted large losses
UAE bourses hang tough
UAE markets were resilient yesterday after two major Abu Dhabi companies posted large losses at the weekend. The Abu Dhabi Securities Exchange General Index fell 0.4 per cent to 2,535.31. But investors and brokers welcomed the additional transparency about the financial condition of two of the capital's top companies. Aldar Properties dropped by 1.6 per cent to Dh2.42 in the first trading session since it reported a Dh789.5 million loss for the first half of the year.
"The stock held up quite well. This confirms our view that the market is closer to its bottom," said Saad Chalabi, an institutional trader at AlRamz Securities in Abu Dhabi. Abu Dhabi Commercial Bank dropped by 1.2 per cent to Dh1.65 after the company said provisions for Dubai World debt had been responsible for much of its Dh531m loss in the second quarter. "What came out as a surprise was the amount of exposure they had to Dubai World but they finally disclosed the figure," said Mr Chalabi. "Showing people what you have is always a good thing. That way investors can calculate their risks."
The Dubai Financial Market General Index dipped 0.1 per cent to close at 1,510.38. Aramex lost 1.7 per cent to Dh1.70 and Union Properties lost 2 per cent to 38 fils. Elsewhere in the region: Qatar's index declined 0.3 per cent to 7,004.66; Oman's measure inched up 0.05 per cent to 6,330.52; and the Kuwait and Bahrain bourses remained largely unchanged at 6,658.30 and 1,393.14 respectively. The Saudi Tadawul All-Share Index rose 0.52 per cent to 6,316.69.