Stock markets are down as liquidity slows

Domestic stock markets fell at the end of yesterday's session, due to a sharp drop in liquidity levels due to a cautious situation, in anticipation of the decline in global markets, uncertainty about the further decline in global interest rates and the expectation of medium-term results.

The Dubai index fell 0.62% or 17.99 points after three consecutive increases, but remained above 2900 to reach 2900.39 points with the decline in shares of real estate, transport, banking and investment, while the Abu Dhabi index lost about 87.68 points, or 1.65%. The pace has slowed since last June to reach 5,302.22 points subject to lower shares of telecommunications, banking, energy and real estate.

Liquidity

Liquidity increased from AED 585.1 million at the previous session to AED 352.83 million, including Dubai 168.29 million and Abu Dhabi 184.54 million. 184.61 million shares were traded, including 115.48 million in Dubai and 69.13 million in Abu Dhabi via 4417 Deal.

Dubai Market

The real estate sector fell by 1.4%, with Damac down 2.45%, Emaar Properties down 1.89%, a day after the decline in quarterly earnings of the company, Emaar down 1.45% %, Union Properties down 1.37% and Emaar. (0.62%) and Arabtec Holding (0.57%).

The banking sector fell by 0.27%, Emirates NBD down 0.4% and Islamic Dubai by 0.19%. The transportation sector fell 0.29%, while Aramex lost 1.6%. The investment sector fell by 0.22%, the Dubai financial market fell by 0.95%, the Al Madina investment by 4.8%, the insurances by 0.14%, the Takaful Emarat by 0.7% and Salama 0.43%.

Emaar was the most traded stock, reaching 5.45 dirhams (37.44 million dirhams), followed by "Dubai Islamic" with a liquidity of 24.56 million dirhams, to close at 5.31 dirhams. Khaleeji Commercial Bank grew by 3.3% to AED 0.599 and Al-Madina Finance by 4.8% to AED 0.219.

Abu Dhabi Market

The Abu Dhabi market fell for the third consecutive session, led by a 3% drop in the telecommunications sector and Etisalat lost ground. The banking sector declined 1.44%, with Abu Dhabi First up 1.8%, the Commercial Bank Abu Dhabi 1.67% and the Bank of Sharjah 2.52%.

The energy sector dropped 1.06% as TAQA dropped 5% after the General Assembly meeting to isolate some board members and Dana Gas by 0.96%, with the intention of of the company to sell its badets in Egypt. The industrial sector fell by 2.68%, while the Gulfar fell by 9.5%.

The real estate sector fell by 0.11%, while Al Qudra Holding fell by 9.4%, RAK Properties by 1.67% and Mnazal by 0.24%.

"Abu Dhabi First" dominated the market with a liquidity of AED 36.04 million to close at AED 15.6, followed by a liquidity of "Aldar Properties" of 20.02 million dirhams to close at 2.31 dirhams, then in "Abu Dhabi Islamic" shares worth MAD 18.68 million AED 5.

Tijari International was the main winner, registering a rise of 6.41% to settle at 6.41 AED, while Takaful was the big loser by 10% against 2.7.

The disclosures

Profits from Dubai Refreshments reached AED 30.9 million at the end of the first half of 2019, representing growth of 181% compared to 11 million in the corresponding period of 2018.

The Board of Directors of Drake & All International has decided to appoint Abdullah Al Atatra as Chairman of the Nomination and Remuneration Committee.

The Gulf General Investment Company (GCC) Board of Directors will meet on Wednesday to review the unaudited consolidated financial statements for the period ended June 30.

Khaleeji Commercial Bank (KHCB), listed on the Dubai and Bahrain Stock Exchanges, earned a profit of 167,000 BD at the end of the first half of 2019, compared with a profit of 1.36 million BD at the end of the same period from last year.

Codification Investment & Development Co. reported a net profit of 12.6 million AED at the end of the second quarter of this year, compared with a profit of 12.2 million AED at the end of the corresponding period of 2018.