Bank Stocks Weigh On Dubai Financial Markets After Rates Cut

Financial markets in the UAE fell at the end of yesterday's session after taking profit from leading stocks, especially in the real estate and telecom sector, as well as banks after the US Federal Reserve cut by 25 basis points, followed by a similar cut by the UAE Central Bank .

Dubai fell 0.28% or 7.76 points to close at 2746.93 points, with real estate, banking and transport shares falling, while Abu Dhabi fell 1.26% or 65.4 points to close at 5,107.76 points as banks, telecom, real estate, energy and investment shares fell.

Liquidity in equities increased to AED 350.4 million distributed over AED 193.2 million in Abu Dhabi and 157.25 million in Dubai and traded 178.13 million shares, of which 55.6 million in Dubai and 122.5 million in Abu Dhabi through the implementation of 3923 transactions. Abu Dhabi First and Emaar Properties have attracted about 30% of market liquidity.

Raed Diab, deputy head of research at KAMCO Investments, said local markets fell yesterday on profit-taking and banking stocks also fell after the US Federal Reserve recently cut interest rates by 25 basis points on pressure on bank stocks.

Dubai Financial Market

Dubai fell 0.44%, with Arabtec down 1.6%, Union Properties down 1.58%, Damac 1.03% and Emaar Properties 0.93%.

The banking sector fell 0.35%, Emirates NBD fell 0.42%, Dubai Islamic Index fell 0.38%, while the transportation sector fell 0.76% as Aramex fell 2%, Gulf Navigation fell 0.43% against Air Arabia rising 0.74% %. The investment sector rose 0.51% with Dubai Financial Market up 1.26%, Shuaa 3.61%, and Dubai Investments Index unchanged.

Emaar Properties dominated the activity, attracting $ 41.8 million in liquidity to close at AED4.27. SHUAA recorded the biggest gainer at AED 0.94, while Al Salam Holding was the biggest loser, dropping 5.8% to AED 0.4.

Abu Dhabi Financial Market

The banking sector retreated 1.91%, with Abu Dhabi First falling 2.69% and Abu Dhabi Islamic Index down 0.38%.

The real estate sector fell 0.37%, Aldar Properties fell 0.42%, RAK Properties rose 0.44%, the energy sector fell 0.25%, ADNOC Distribution slipped 0.38%, Dana Gas rose 0.54%, and TAQA rose. By 1.49%. The oasis also fell. Capital 0.98%.

Source: albayan