Sunday, Apr 27, 2014
Dubai: Trading in Gulf Navigation shares was suspended in the Dubai Financial Market today (Monday April 27) after the firm posted its first quarterly profit since 2010 and its price hit the automatic cap.
More than 42 million shares in the shipowner changed hands before the suspension came into play. By that time it’s price had soared 14.71 per cent, from 34 fils to 38.2 fils.
Will interest in it continue tomorrow? Perhaps, but “tomorrow is another day,” said independent investor Adel Al Hammadi.
Analyst Osama Al Ashri, a member of Britain’s Society of Technical Analysts, was in no doubt that Gulf Navigation remained risky. “For traders it’s okay, but not for investors. It’s cheap, but it’s high risk. I do not think it will go up for a long area — 20 to 30 per cent maximum. This company still has a big financial problem.
“There are other shares under one dirham — like Gulf Finance House, who have already settled their liabilities.”
Arabtec shares continued to dominate the Dubai Financial Market. As Arabtec’s morning prices swung from a low of Dh8.74 to a high of Dh9.26, the DFM index experienced similar swings before closing 0.55 per cent up at 5,116.49.
High risk
But trading in Arabtec was a little more subdued today, with shares with Dh802 million changing hands compared to Dh1.2 billion on Thursday. After a rambunctious morning, a more sedate afternoon’s trading saw it close 2.86 per cent up at Dh8.99.
Al Ashri warned that Arabtec remained high risk, though he believes it can still go higher. “Arabtec is trading in an abnormal area. Three to four years ago it was below one dirham, It’s gone up more than 1,000 per cent, and this is only due to trading. The position of the fundamentals is different. There’s no strong positive news to support it. There are lower risk shares in the same sector,” he said, citing Deyaar and Aldar as examples.
Al Salam Bank — Bahrain was the next most significant player of the day by value — and top in total number of shares — with shares worth Dh505 million traded. It closed 7.87 per cent up at Dh2.33.
Emaar, still riding high on last week’s above-expectation figures for the first quarter, rose 1.9 per cent to Dh11.00, with a total value of Dh228 million shares traded. Deyaar Development rose 0.6 per cent to Dh1.69.
Union Properties went against the trend for real estate, dropping 1.89 per cent to Dh2.60, with shares worth Dh118 million traded.
The other downward driver was market operator Dubai Financial Market, whose shares lost 2.62 per cent to close at Dh3.72 and stocks with Dh93 million exchanged.
Al Hammadi said he expects a small correction in real estate in the next few days. “Maybe it will be a chance for the other shares,” he said. “They might see more activity for the next few weeks.”
Abu Dhabi
The Abu Dhabi Securities Exchange (ADX) index remained boisterous most of the day, rising and falling regularly during the morning, dropping to a low of 5,148.72 shortly after opening and climbing to a high of 5,182.24 around 11am, with more ups and downs in the hour before the close. In the end it closed 0.35 per cent down at 5,153.15.
By Andy Staples Editor Universal ?Copy Desk
Gulf News 2014. All rights reserved.
