After a positive start, indices in both Dubai and Abu Dhabi gave back gains. The FADGI finished just a shade lower whilst the DFMGI ended down 0.3%.
- RakBank +2.1%
- ADNOC Distribution +2%
- Emaar Development -4%
RakBank is back on the list, appearing as the biggest gainer amongst the large caps on Tuesday, up 2.1%. Whilst there is news of a new strategic partnership in play today, volumes appear far from overwhelming. Gains are more likely a result of buying in the wake of yesterday’s profit taking.
ADNOC Distribution also fared well, adding 2%. Volumes are towards the upper end of the recent range and news of a partnership in Japan did surface, but again whether that would be sufficient to deliver the gains remains to be seen.
Emaar Development was 4% lower. That extends the losses posted on Monday and although there’s no company specific news out, a recent report has highlighted that amidst abundant supply, Dubai rent hikes are expected to slow in the year ahead. There may be some cooling of sentiment as a result here.
