Gulf News - 12/10/2006
UAE stocks ended yesterday's sessions on mixed notes in which Dubai's benchmark index fell 1 per cent to 436.11 points, while Abu Dhabi's general index advanced 0.30 per cent to 3,511.85 points.
The 3,500 point barrier proved to be a strong support level for Abu Dhabi, although the value of traded shares remained relatively low at Dh170.4 million.
In Dubai, the decline of Emaar Economic City in the Saudi market seemed to have had an impact on Emaar's share price, as it fell 0.68 per cent to close at Dh14.55.
The banking sector also declined with Emirates Bank International, and National Bank of Dubai losing 2.17 and 0.99 per cent respectively.
"By this time last year, the markets were very active, as there was always news about the third quarter leaked to the market," commented Ziad Al Dabbas, the financial advisor at the National Bank of Abu Dhabi.
Investors were also bullish last Ramadan, and this is a worrying sign according to Al Dabbas.
"It's either that there is news being leaked about less than expected results for the third quarter, or the authorities succeeded in enforcing some discipline on the markets," he added.
Investors and brokers are reacting cautiously to market news, with conflicting rumours about Emaar outperforming or underperforming the first half results according to brokers.
"It's not all bad news, as cautiousness can be a merit, and the markets can be in course of a steady and healthy growth," commented a broker.
Yesterday, RAK Properties reported Dh376.6 million in profits for the nine months period ending September 30, while the third quarter net profits were Dh20.45 million on account of finance income.
Meanwhile, RAK Ceramics announced that it will make strategic investments in other industrial and manufacturing companies, in joint venture with Ras Al Khaima Investment Authority. With the results season at hand, many analysts wonder what effect will it have on the markets, with Abu Dhabi investors reacting negatively towards the positive achievements of Ras Al Khaimah White Cement, which managed to reduce its losses from Dh30 million to Dh10 million in the third quarter. The company fell 1.1 per cent to close at Dh1.81.