Kuna - 7/5/2006
The UAE shares took a sharp downturn yesterday with share values of many companies listed in the bourse reaching the rock bottom or almost close to book value or even par value. Analysts predict that this position usher the risky future of the listed shares that are witnessing incessant bleeding except for few rises.
Bourse speculators are tracking the least loss status and not reaping profit which is at present a dream, in particular those who had access to Emaar share for 28 dirhams with hope of its rise to 35, but against all expectations it nosedived to 12.85 dirhams in four months.
In fact all those interested, whether analysts, shareholders or speculators were suddenly struck by being embroiled into a vicious circle with analysts proving themselves total failures, sometimes they say the bleeding is due turning big portfolios liquid and later they say the reason is fear that forces holders to sell their shares out of willingness for lesser losses.
However the mini investors have already turned deaf ears to the analysts on TV screens whom they describe as non-knowledgeable and called for government salvage process. Turning to figures the listed Emaar Real Estate Company share dropped to 12.85 dirhams per share, the least ever in one year, though it is the world biggest as to market value. Also share of its affiliate Amlak nosedived today to 7.36 dirhams per share.
This down slipping trend applies to other listed companies such as the integrated communications company, Danah Gas Company, Aghthiya Company and the United Realty Company.
Index of Dubai stock market shed yesterday 25.72 points falling by 4.74 per cent and closed at the level of 516 points. Index of Abu Dhabi stock market dropped to 3561 points falling by 2.75 per cent and this led to fall of the index of the Emirates market by 150 points and it closed at 4718 points. Shares in trading totalled 190 million for 1.5 billion dirhams sealed through 14,315 deals.