UAE bourses 'still anticipating guidance'

The Abu Dhabi Securities Exchange (ADX) fell 0.55 per cent to 2,585.80 on Tuesday. Consumer staples and banking stocks weighed on the bourse with Abu Dhabi Commercial Bank, the UAE's third largest lender by assets, tumbling 2.33 per cent to an almost 11-week low of Dh2.93. First Gulf Bank declined 1.91 per cent to Dh15.25 and Bank of Sharjah lost five per cent to Dh1.7. Telco etisalat and real estate developers Aldar Properties and Sorouh all closed flat. "Local bourses are still anticipating guidance from international market performance," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments. Article continues below "There has been a high correlation between our markets and global news events over the last few months. Commodity prices dropped lower yesterday and US future were also down; such movements affect local market performance," he added. The International Fish Farming Holding Company led losses for a second consecutive day, falling 9.8 per cent to Dh4.14. Methaq Takaful Insurance Company slipped 0.71 per cent to Dh1.4 and Dana Gas shed 1.79 per cent to Dh0.54. Of the 28 companies traded, five rose, 18 fell and five closed unchanged. Some 40.1 million shares worth Dh67.8 million were traded. Elsewhere in the region, Saudi Arabia's Tadawul All Share Index plunged 1.34 per cent, Qatar's measure rose 0.28 per cent, Bahrain's bourse was little changed, Kuwait's index added 0.2 per cent and Muscat's exchange slipped 0.4 per cent. DFM General Index The Dubai Financial Market (DFM) General Index dropped for a second consecutive session amid fresh worries over sluggish growth in the Eurozone. The bourse slipped 0.27 per cent to 1,466.50 as European shares tumbled on disappointing GDP growth in the bloc's powerhouse Germany and stagnation in France. The negative global sentiment shaped regional attitudes amid thin local news flow. Property and banking stocks weighed particularly on earnings with bellwether Emaar falling 0.36 per cent to Dh2.8 and Drake and Scull International dropping 1.11 per cent to Dh0.89. Emirates NBD, the UAE's largest lender by assets, lost 1.97 per cent to Dh3.99 despite credit agency Fitch removing the bank's negative viability rating. "The major news was the GDP numbers for Germany, which were flat for the quarter," said Marwan Shurrab, vice-president and chief trader at Gulfmena Investments. "This renewed fears over a potential slowdown in economic recovery and most global markets saw a sell-off across the board yesterday," he added. Union Properties led losses, dropping 3.43 per cent to a more than four-month low of Dh0.366. The property developer last week reported a Dh439 million net loss for the first six months of the year. Deyaar lost 1.45 per cent to Dh0.271 and Sharjah-based low budget carrier Air Arabia slipped 0.64 per cent to Dh0.622. Telco du bucked the negative trend, climbing 0.66 per cent to Dh3.04.