Dubai and Abu Dhabi stock market report 24 January 2007
New today - Technical Analysis for Dubai Financial Market (after market report).
|
|
|
A good day for ADSM, trading heavily again and rising another 1.2% to close at 3063 with 171m dhs worth of trading, 27 stocks rising and 11 falling. DFM was less promising though. Although volume cracked the billion mark with AED 1.2 billion of trading, the index fell marginally by 0.3% and only 5 stocks rose out of 20 traded.
2006 Results Today
- First Gulf Bank with a nice 70% cash dividend but not explaining where all their profits have gone.
- Abu Dhabi Islamic Bank with the best bank performance yet and on the face of it, efficient use of shareholder funds.
- Emirates Bank International with a 12% profit increase looking very weak after an 87% revenue increase.
- Emirates Islamic Bank with a spectacular 129% increase in profit but from what?
- Commercial Bank of Dubai another one that takes massive revenue growth and turns it into a miserable 5% growth in Earnings Per Share.
- And finally, United Kaipara Dairies - a company no one outside New Zealand has heard of, releasing results that no one can understand.
Dubai Financial Market
Dubai Investments PJSC (DIC) still very active with 241m dhs worth and a slight 0.9% rise. Emaar Properties PJSC (EMAAR) behaving normally, 650m dhs worth and a 0.4% drop, almost mirroring the DFM index. Biggest rise was from National Bank of Dubai (NBD) of 3.2% and yet again, curiously high volumes of 15.7m dhs worth of trading.
Union Properties PJSC (UPP) suffered the biggest fall on DFM, of 3.7% on heavyish trading of 23m dhs worth. Investors perhaps realising their results are not so good after all. All other actively traded shares fell 1-2% except for Dubai Islamic Bank (DIB) which remained flat.
Abu Dhabi Securities Market
Heaviest trading was in First Gulf Bank (FGB) but a bit directionless with its 0.4% rise to 12.90 from 37m dhs worth. Like their results, it's not quite clear what to make of it. Emirates Telecommunications Company (ETISALAT) still popular with 27m dhs worth and a reasonable 1.8% rise to 16.55. Abu Dhabi Islamic Bank (ADIB) also busy with a 1.3% rise from 17m dhs worth of trading.
Most of the more active shares rose 1-2% with only ARKAN, Abu Dhabi Commercial Bank (ADCB), Oasis International Leasing Company PJSC (OILC), and Ras Al Khaimah Cement Company (RAKCC) falling less than 1% each (from the active list that is). Foodco Holdings PJSC (FOODCO) took an 8.6% beating from higher than normal volumes, that was also the biggest drop of the day.
Extreme rises from ASMAK up 9.9% and QCEM up 8.8%. A total of an insignificant three trades between them.
Technical Analysis for DFM
The market closed down today not following through with the momentum of yesterday. From a technical point of view the 3 day Moving Average (3MA) has crossed the 12 day moving average (12MA) which is a positive sign towards the upside. However the Directional Movement System (DMS) indicator is showing a market that is moving sideways and is not trending upwards. The Relative Strength Indicator (RSI) confirms this. Accordingly, from a technical point of view the market is still range bound and is not signaling a trend upwards.
Fundamentally the market is good value. A summary of the main fundamental indicators for the market as a whole return the following values:
- Return on Assets (ROA) 6.44%
- Price to Book Value (P/BV) 2.79
- Price to Earnings (PE) 12.11
Conclusion
Taken together this analysis indicates the market is still relatively
directionless but represents good value at these prices. Long
term investors could buy while traders
could wait to see how the market travels over the short term.
ADSM tomorrow.
- Discuss and read UAE company news at Dubai Share Talk.