UAE market news & discussions for 03 November 2008The slow moving train wreck we call the UAE markets continued their journey downwards today. However, the recovery in world markets, the imminent US election and the recovery in inter bank lending may indicate a bottom is being explored. Today the value of shares traded was Dhs 394 million on the DFM and 153 million on the ADX, indicating that investors have had enough and are largely sitting on the sidelines. The DFM index closed down 1.63% at 2907 and the ADX index closed down 0.55% at 3,357. On the DFM, SHUAA returned from suspension announcing that the Dubai Banking Group (DPG) were wary of converting their bond into 250 million shares at 6dhs. Despite having legal advice that DPG were obliged to do this they have agreed to extend the conversion date to 2009 and possibly 2010 and will facilitate DPG gaining a majority on the board. One wonders where this leaves minority shareholders. The shareholders meeting should be interesting. SHUAA shares closed at 2.64 on 36 trades. See below for results. The only bright spot was TAKAFUL-EMARAT closing limit up at 2.64 dirhams on volume of 10 million shares traded. On the ADX, Realestate and Energy stocks all had a dreadful day with every stock in each sector down. While the UAE property market is tough, UAE property giant Nakheel is finding that property companies in Australia are also doing it tough. Having bought 15% of Mirvac earlier in the year when the share price was close to $5 they are being asked to put more money in as the share price nears $1. Luckily for Nakheel their CEO use to be in charge at Mirvac so should be able to give them some good advice. RESULTS SHUAA 08H1 Net Loss Dhs 317m down 300% approx from pcp. Dubai Financial MarketOn the Dubai Financial Market 5 shares advanced and 22 declined. Shares continued to test 52 week lows lead by EMMAR down 1.13%, Arabtec (ARTC) down 0.51%, ARAMEX down 3.57%, Dubai Financial Market (DFM) down 0.44%, Dubai Investment Company (DIC) down 2.4%, Dubai Islamic Bank (DIB) down 1.21% and Tamweel Finance (TAMWEEL) down 4.52% TAKAFUL House and EMARAT were the only shares to rise on meaningful volume. Abu Dhabi Securities MarketOn the ADX, 8 shares advanced and 26 declined. In the banking sector Abu Dhabi Commercial Bank (ADCB) down 4% and National Bank of Umm Al Quwain (NBQ) down 7% lead the declines. Aldar Properties (ALDAR) down 2.58% and Sorouh Real Estate (SOROUH) down 3.21 lead the decline in Realestate. Aabar Energy (AABAR) down 2.40%, Dana Gas (DANA) down 1.89% and Abu Dhabi National Energy (TAQA) down 0.50% made it a clean sweep for the energy sector. SIB up 2.46%, National Bank of Abu Dhabi (NBAD) up 6.58%and Abu Dhabi Islamic Bank (ADIB) up 1.15% were the notable gainers. | |