Thin volume on Dubai stock market despite Erbil deal

Markets Wrap: Thin trading volumes weighed on Dubai Financial Markets Company shares, even as the bourse operator signed an agreement to help to establish a stock exchange in Erbil, the capital of Iraqi Kurdistan.

The DFM will support the Erbil Stock Exchange. Galen Clarke / The National

Thin trading volumes weighed on Dubai Financial Markets Company shares, even as the bourse operator signed an agreement to help to establish a stock exchange in Erbil, the capital of Iraqi Kurdistan.

The DFM will provide technical support to the Erbil Stock Exchange, the company said yesterday.

"The development of the financial market in Kurdistan is undeniably a significant step in setting its economy for a new era of development and enhancing its capabilities to attract foreign investments," said Essa Kazim, the DFM's chief executive.

But the company's shares slid 0.9 per cent to Dh1.06 as low volumes persisted in both Dubai and Abu Dhabi.

The value of stocks traded on the Dubai Financial Market yesterday was just Dh71.8 million, less than half the daily average so far this year. The value of shares traded on the capital was also below average.

Local equities headed sideways, with most trades lacking conviction. The DFM General Index fell 0.1 per cent to 1,625.52, while the Abu Dhabi Securities Exchange General Index was flat at 2,652.18.

In Dubai, Aramex, Emirates NBD and Deyaar Development led the declines.

In the capital, stocks fell including Abu Dhabi Commercial Bank, National Bank of Abu Dhabi and Abu Dhabi National Energy Company, known as Taqa. The declines were balanced by Dana Gas, which rose 4.4 per cent to 47 fils each as it approached a deadline for a large sukuk repayment.

Global markets tumbled as the IMF warned European banks may need to sell assets and investors approached third-quarter earnings season in a pessimistic mood.