Heavy trading continues on UAE bourses
UAE stocks continued their rally yesterday , despite marginal profit-booking in Dubai which dragged the benchmark index down by 0.49 per cent to 4,187.90, while Abu Dhabi's general index advanced into new territory by 0.82 per cent to 3,321.61.
The value of traded shares exceeded Dh3.35 billion, of which Dh2.73 billion were in Dubai and Dh625 million in Abu Dhabi.
"Such high values indicate that buying is prevailing in the markets, and given Dubai's gains of more than 3.5 per cent on Sunday; it was but natural that some profit booking takes place today," said Hamood Abdullah, general manager of Emirates International Securities.
The shares of Dubai Fin-ancial Market (DFM) fell by 0.31 per cent to Dh3.22, while Emaar Properties retreated to Dh11.80, down 0.42 per cent.
The value of traded shares exceeded Dh3.35 billion, of which Dh2.73 billion were in Dubai and Dh625 million in Abu Dhabi.
"Such high values indicate that buying is prevailing in the markets, and given Dubai's gains of more than 3.5 per cent on Sunday; it was but natural that some profit booking takes place today," said Hamood Abdullah, general manager of Emirates International Securities.
The shares of Dubai Fin-ancial Market (DFM) fell by 0.31 per cent to Dh3.22, while Emaar Properties retreated to Dh11.80, down 0.42 per cent.
Overseas interest in UAE stocks continued fuelling the rally with a surplus in their net cash flow indicating the flow of liquidity to the market. "These foreigners are mostly mutual funds and institutional investors, hence their purchases are substantial," added Abdullah.
However, some analysts criticise a common practice, terming it free-riding; where brokerage firms offer their clients deferments up to four days in purchasing orders' settlement, while these clients give selling orders sometimes on the same day for quick gains, a practice deemed illegal and is usually carried out on the broker's responsibility. Source
However, some analysts criticise a common practice, terming it free-riding; where brokerage firms offer their clients deferments up to four days in purchasing orders' settlement, while these clients give selling orders sometimes on the same day for quick gains, a practice deemed illegal and is usually carried out on the broker's responsibility. Source
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