Dubai Financial Market Dubai Financial Market

2,499.93 -50.57 -1.98 %

DSI continues to lead losses on Dubai bourse

(7/4/2018 8:01:00 AM)

Drake and Scull International (DSI) continued to lead losses on the Dubai bourse on Tuesday as its share prices dove around 10 per cent, bringing their decline since June 24 to 39 per cent.

Share prices of the contractor ended at Dh0.607, 9.94 per cent lower, and were the most actively traded stocks on the Dubai Financial Market (DFM). The plunge on Tuesday marked the fifth time in around a week that DSI’s share prices fell nearly 10 per cent, the maximum permissible price decline.

The Dubai Financial Market (DFM) index was not weighed down by DSI, though, given its market capitalisation, as the index inched up 0.33 per cent to end at 2,838.53 after falling 1.23 per cent a day earlier.

“We believe markets will remain volatile, given pressure in emerging markets, but in the long run, investors will continue to reward good companies with strong fundamentals and resilient business models,” said Sanat Sachar, equity research analyst at Al Mal Capital.

A strengthening US dollar lately has led international investors to pull money out of emerging markets. Expectations for further interest rate hikes and a stronger US currency are likely to continue hurting emerging markets, too.

The MSCI’s Emerging Markets index is now down over 20 per cent from its peak, Sachar pointed. For the UAE’s markets, analysts say that despite attractive valuations especially in Dubai, there is a lack of catalysts to drive any buying activity. But that could change soon, Sachar said, as listed companies start reporting their financial results for the second quarter of 2018 soon.

“We expect some very decent numbers for some of the companies we favour, and this should help in reinstating investors’ confidence in these names,” he said.

In Dubai, powerhouse Emaar was little changed, ending 0.4 per cent higher, as Air Arabia fell 1.01 per cent, and Gulf Navigation jumped 5.33 per cent. Meanwhile, the Abu Dhabi Securities Exchange general index slid 0.16 per cent to 4,569.85. First Abu Dhabi Bank remained flat at Dh12.1, as Abu Dhabi Commercial Bank lost 1.4 per cent, and Aldar Properties gained 1.48 per cent.

Gulf News