UAE market news & discussions for 23 January 2008If you're still reeling from the roller coaster ride on the markets this week, it probably isn't finished yet. Both the DFM and ADSM had a scorching day with many stocks closing limit up (15% in Dubai, 10% in Abu Dhabi) after last night's announcement of a 0.75% cut in interest rates in the USA - with the UAE Central Bank announcing the same today. DP World was the only stock traded on the DIFX today, and recovered by 7.3% to close at $1.03. US markets did not bleed as much as was expected after seeing big falls around the world yesterday, but opened sharply lower today, while European stocks opened higher this morning but had plummeted 4% by mid-afternoon. Saudi's Tadawul, which stays open until 5pm, gave up almost all its initial gains to close just 0.23% ahead of yesterday's close. That does not bode well for the UAE markets tomorrow. Some good news in a report from the Kuwait Financial Center, or Markaz, who forecast inflation rates in the GCC to be high, companies' profit growth to be higher at 20% or more, and stock prices to grow even more with UAE indexes to end the year up by 40% or more. The large cut in interest rates by the US Federal Reserve on Tuesday, prompted business leaders at the World Economic Forum meeting in Davos to interrupt their skiing schedule and express reservations. They said we are facing a serious financial crisis which could be alleviated by stronger global leadership. Which leaves us a little nonplussed. Aren't business leaders supposed to provide, not ask for, leadership? A Dubai Investments subsidiary was reported to be planning AED 20 billion of real estate developments in the next 5 years, half of that for a mixed use project on Emirates Road in Ajman. Emirates Airlines was reported as looking at an IPO within the next couple of years, for 20%-30% of its share capital. Which sounds about the same as the last EK IPO report a month or two ago. Big number of the day award goes to Metito, a water treatment and desalination systems supplier, who said at the World Future Energy Summit in Abu Dhabi, that $35 trillion (AED 128 trillion) is needed for spending on electricity and water infrastructure around the world, to keep the lights on and the toilets flushed until 2030. If every resident in the UAE handed over 30 million dhs (each), that should take care of the bill. 2007 results released today
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Dubai Financial Market
The DFMGI came back from yesterday's hammering with an astounding 10.5% rise to 5755 points, and turnover a colossal AED 6.3 billion. Emaar Properties (EMAAR) reigned over the trading floor with close to AED 2 billion of traded value, and a rise of 11.1% to 13.55.
An astonishing thirteen stocks traded limit up, or close to it, with all of them except for Aramex (ARMX) seeing no sellers in the queue at the end of the day. DFM, DEYAAR, and AIRARABIA in that list, lined up behind Emaar on the top stocks by turnover.
Only 2 stocks fell today, Arab Insurance Group (ARIG) by 0.3% and GRAND by 5.9%, on insignificant levels of trading.
Abu Dhabi Securities Market
ADSM also had a robust rebound with a 6.3% rise to 4575 points but on less exciting turnover of AED 1.86 bn.
Nine stocks were trading limit up, or close to it, and eight of them with no sellers in the queue at the end of the session. Aldar Properties (ALDAR), First Gulf Bank (FGB), Dana Gas (DANA), and AGTHIA stood out in that list on high turnover. All the usually actively traded stocks were up between 5%-10%. UAB stood out on very heavy turnover after announcing results, but was up by just 2.4% to 7.20. Etisalat (ETISALAT) had a busy day with a 6.7% rise to 23.40.
The list of losers had 7 stocks, none of which traded more than 100,000 dhs worth today.
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