Thin liquidity and Chinese stock market wobble weigh on UAE shares
‘The main reason is liquidity issues. The market has been trading very thin volumes,’ said Hisham Khairy, the head of institutional trading at brokerage Menacorp.
July 28, 2015
Updated: July 28, 2015 04:00 AM
UAE stock markets declined yesterday amid thin volumes.
The Dubai Financial Market Index dipped 0.8 per cent to 4,110, dragged down by property and construction stocks.
The builder Arabtec Holding fell 1.6 per cent to Dh2.36, while the theme park developer Dubai Parks and Resorts dropped 1.5 per cent to Dh1.28. Emaar Malls lost 2.7 per cent to Dh3.17.
The total volume of shares traded stood at 166.7 million.
“The main reason is liquidity issues. The market has been trading very thin volumes,” said Hisham Khairy, the head of institutional trading at brokerage Menacorp.
Local shares felt the spillover effect from weak Asian markets.
Asian stocks, mainly Chinese equities, have been taking a hit since last month, causing Beijing to intervene to shore up the market.
In Abu Dhabi, the index oscillated between gains and losses yesterday, but ended 0.3 per cent lower at 4,854.63. The total volume of shares traded was 53.8 million.
The most active stock by volume was the Sharjah-based Dana Gas, which finished flat at Dh0.55. The second most active stock by volume was the property developer Aldar, which dropped 1.4 per cent to Dh2.65.