Aldar Properties was the big faller on UAE exchanges, posting a 6.2 per cent decline that dragged the Abu Dhabi Securities Exchange market general index lower.
The index closed down 0.7 per cent at 4,435.85, with Aldar accounting for 17.2 points of the index’s 33.8-point loss.
“The markets are acting like drama queens at the moment, overreacting to everything,” said Ahmed Waheed, vice president of the institutional desk for Menacorp Finance. He said when consumer sentiment turns negative it affects the bourses like a contagion. “The Aldar Properties fall is a lag to what happened to Emaar Properties earlier in the week. The volumes are so small, with no institutional investors buying in the market, it means that what would normally be a small correction turns into a huge move.”
Aldar offered no comment when asked why its share price had fallen so dramatically.
The Dubai Financial Market General Index was up a fraction at 0.01 per cent at 3,447.44 yesterday. Since falling below 3,500 on March 19, the index has gone 10 straight sessions without showing a daily change greater than 1 per cent in either direction.
“The DFM needed to stay above 3,500 and once it broke that level we are now looking at 3,300,” said Mr Waheed.
He said that investors across both bourses were sceptical towards company intentions and waiting to see first-quarter results. Market heavyweights such as Drake & Scull and Arabtec have announced restructuring plans.
On the ADX, National Bank of Fujairah fell 7.98 per cent, closing at Dh3 per share.
On Nasdaq Dubai the day’s big gainer was shop fit-out company Depa, which jumped 14.8 per cent.
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