UAE Markets Experience Massive Losses

Being alarmed by the uncertainty of global economy, as reflected in the slowing US economic growth, the UAE markets have reported massive losses in its stocks. UAE recorded a total losses of 121.24 points, which maybe due to the deepening worries on possible US recession again.




The Dubai index is in greater peril and slipped below the critical support of 5,200 mid-session yesterday, before mounting a limp recovery.

It faces further declines unless daily turnover tops Dh1 billion for several sessions running, Taha said. Yesterday's trading was worth Dh865 million. "To have a solid trend, big stocks with sound fundamentals should lead the market, with a turnover sufficient to create supporting levels," Taha said.

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As Foreign Investors Return, UAE Shares Rise Again

With the two-day decline of UAE shares, UAE made a bouncing comeback with a positive gain as foreign investors made a return at the UAE stock market.

In the broader market, gainers led losers by almost two to one. Banking, energy and healthcare shares rose.

Abu Dhabi Commercial Bank gained 1.58 per cent to Dh5.14 and National Bank of Abu Dhabi edged up 0.25 per cent to Dh19.90. First Gulf Bank lost 0.91 per cent to close at Dh27.25.

In the energy sector, while Dana Gas shed 0.54 per cent to end at Dh1.85, Abu Dhabi National Energy, also known as Taqa, added 2.15 per cent at Dh2.85.

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UAE Shares Ascend on Q2 Earnings

As expected, shares in UAE stocks advanced due to positive reports that some companies here are doing good investments earlier for the second quarter, which includes the Dubai Financial Market and Abu Dhabi Securities Exchange that have both gained a marginal 1.8 percent in its stocks.

"Investors are expecting good earnings especially in the banking and real-estate industries," said Sherif Abdel Khalek, regional sales executive at Beltone Securities Brokerage, in a Bloomberg report. "Our region's growth is much better than the rest of the world."

The report said Qatar's Doha Securities Market Index advanced yesterday along with the UAE bourses. It added that companies in the UAE, whose economy will grow 7.2 per cent, are expected to report an average 14 per cent growth in second-quarter earnings.

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UAE Stocks Advances, Lead by Finance and Properties

The upward trend in UAE stocks, making it advanced for this week trading were led by finance and real estate stocks.

In Abu Dhabi, banking and insurance rose 1.14 per cent and 1.56 per cent respectively. Real estate gained 1.27 per cent, but the energy sector fell 1.05 per cent.

First Gulf Bank jumped 3.09 per cent to Dh25.05. Aldar Properties and Sorouh Real Estate Company rose 2.01 per cent and 0.94 per cent. All three energy firms - Dana Gas, Aabar Energy and Abu Dhabi National Energy Company declined.

"We expect the sector to be undervalued in the near term", said Bill Rogers of Rive Financial.

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Banks May Suffer Real Estate Heat

UAE banks can gradually feel the heat of the possible medium-term risks, brought out by the increasing share of real estate assets , along with the rising inflation. In addition, a real estate shortage of supply and the low interest rate environment is now pushing for a cycle of asset price increases.

The unprecedented growth in real estate prices has encouraged the practice of using personal loans to purchase off-plan properties for a small down-payment and ride the wave of the price appreciation powered by leveraged returns.

This exposure is hard to separate from the personal loans numbers reported from the banks and could be an additional exposure to the real estate sector.

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GCC Stocks Recover in April

After enduring stocks volatility for past months, GCC stock markets are now recovering, particularly this April. Will the recovery continues? Lets Find out.

With oil prices likely to remain relatively high over the next few years, the country’s economic boom looks set to continue in the near term. Oil is likely to play a crucial role in UAE’s growth in the next few years. However, non-oil GDP is likely to dominate overall growth in real and nominal terms with private sector playing a bigger role in future helped by surge in oil prices that has boosted the oil earnings and helped to underpin public investment and private confidence. Going forward, the government’s main challenges include pushing ahead with diversification into more labor intensive activities, and leverage the Emirate’s strong hydrocarbon sector to stimulate and support broader economic growth.
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Survey: UAE Banks Extend Good Performance

UAE banks will surely make it better in 2008 as they were being praised for a good performance last year, survey said.

Fitch said it expects banks to perform strongly in 2008, given that performances rely heavily on core banking activities, and also in the light of continuous strong demand for credit.

Despite sector loan growth of 40 percent in 2007 and strong growth in prior years, asset quality remained sound in 2007, Fitch noted.

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