[2008-02-05]  UAE stocks continue to recover lost ground
UAE stocks continued to recover on Monday, adding Dh9.69 billion in market capitalisation and shifting the Emirates Securities general index up 1.18 per cent to 6,068.15.

The performance since the beginning of the year shifted to positive grounds for the first time after spiral losses in January, to record 0.86 per cent of gains.

The increasing volatility resulted in strong gains by some leading companies, including telecom operator du, which surged by 13.10 per cent to Dh6.65, and Amlak Finance by 9.36 per cent to Dh5.14.

Nevertheless, Emaar Properties advanced more cautiously by 0.81 per cent to Dh12.50, while Dubai Financial Market reversed its course and fell by 1.47 per cent to Dh6.03 after advancing by almost six per cent on Sunday. The DFM general index gained 69.94 points, or 1.21 per cent, to close at 5,855.83

Air Arabia and Deyaar Development were also among the gainers, advancing by 5.47 and 1.53 per cent respectively.

The bullish market prevailed in Abu Dhabi as well lifting the general index up by more than one per cent to 4,736.51.

The real estate and energy sectors remained the heaviest traded, reporting a varied performance as well, with a company like Aldar Properties rising by 4.19 per cent to Dh11.20, while Sorouh Real Estate, its peer, advanced more modestly by one per cent to Dh8.63.

"There is no doubt that the downtrend was induced by the bleak conditions of international markets, though it was closer to sympathising rather than anything else," Mohammad Ali Yasin, managing director of Shuaa Securities, said.

Analysts and market experts agree that the volatility does not serve the market any good, as the high uninterrupted ascends are most likely followed by steep falls. "The problem is that when sentiment and investor confidence deteriorate they take time to recover," Yasin added.

Elsewhere in the region, Saudi Arabia's Tadawul All Share Index gained 0.8 percent, while the Kuwait Stock Exchange Index added 0.3 percent. Oman's Muscat Securities Market 30 Index rose 3.3 per cent.


Source: © Al Nisr Publishing LLC 2007.