Bourses trade in positive territory

Dubai The Dubai Financial Market (DFM) index consolidated in the positive territory Wednesday on low volume ahead of an anticipated rate cut later in the day by the European Central Bank (ECB) to stimulate growth in the region’s flagging economies. Analysts say the international markets are also coming off their lows in anticipation the US Federal Reserve and Asian central banks will loosen monetary policy and pump more money into the financial system to shore up their economies which look to be teetering on the brink of a recession. The DFM index closed Wednesday at 1,455.96, up 0.46 per cent. Around 54.82 million shares, cumulatively worth about Dh71.66 million were traded on the stock market Wednesday, which lower than Tuesday. The volume of shares traded on the Dubai market Wednesday reflected a lack of risk appetite among investors. About 10.9 million shares of real estate major Emaar, cumulatively valued at around Dh30.85 million were traded on the market Wednesday, its stock closing 0.35 per cent higher at Dh2.84. Article continues below The global financial markets have all but wiped out their gains made in 2012 on fears of a disorderly sovereign debt default by Greece. Analysts say the regional markets are trading with a negative bias on low volumes as international oil prices which are a major support to the region’s economy are falling. Global oil prices have fallen more than 10 per cent since April and could fall further given a deepening Euro zone sovereign debt crisis. Of the 26 company stocks traded Wednesday, 15 rose, while 7 fell and 4 closed unchanged. The day’s top gainer was GGICO, its shares closing 4.56 per cent higher at Dh0.298. Ekttitab was the day’s main loser, its shares dropped 8 per cent to close at Dh1.15. Shares of Emaar were the most traded by value and volume on the Dubai market Wednesday. The Abu Dhabi Securities Exchange (ADX) general index stayed in the positive territory Wednesday with investors expecting the European Central Bank to effect a 25 bps rate cut in its prime lending rate to ease liquidity pressures. However, the volume of trade on the market remained thin as a sharp fall in global oil prices has put major investors on the sidelines for the time being. Abu Dhabi market, however, is backed by the solidity of its listed banks and the emirate’s oil exports which happens to be a major source of government’s revenues. Analysts say the market will trade in a range with a downside bias until greater clarity on how Europe is going to tackle its debt problems emerges. The ADX general index closed Wednesday at 2,435.19, up 0.07 per cent, the rise being led by real estate sub index. Blue chip real estate stocks such as Aldar Properties and Sorouh Real Estate gained. Wednesday, around 46.17 million shares cumulatively worth about Dh61.39 million traded on the Abu Dhabi stock market. Of the 24 company stocks which traded, 10 advanced, while 5 declined and 9 closed unchanged. The potential merger between Aldar and Sorouh remains a catalyst for the market, as and when some concrete details on this deal emerge. The fears of Greece’s exit from the Euro zone and slowing global economic growth are major market concerns as are the possibilities of a hard landing for China in the coming months on the back of falling orders from its main markets - Europe and the U.S., where economic growth is also showing signs of tapering off. The stock of Aldar closed Wednesday 1.85 per cent higher at Dh1.09. About 16.87 million shares of Aldar cumulatively worth about Dh18.5 million changed hands on the market. The top gainer on the Abu Dhabi market Wednesday was Agthia, its shares rising 4.39 per cent to Dh2.20 by the close of trading. Arkan was the day’s top loser, its stock closing 3.66 per cent lower at Dh0.78. The shares of Abu Dhabi’s real estate major Aldar were the most traded in terms of value and volume on the Abu Dhabi market Wednesday.