A move by Shuaa to increase its capital base through issuing new shares propelled the combined traded value on Dubai Financial Market to more than Dh1.5 billion on Monday. Traded value jumped to Dh1.5 billion, 11 times more than the 30-day daily average of Dh126 million. Out of this, Shuaa’s traded value stood at Dh1.37 billion. It is also the first time this year the local bourse has seen a Dh1 billion or more traded value.
Shuaa in a statement posted on DFM said it has increased the share capital through issuance of 1.47 billion new shares to Abu Dhabi Capital Management, ADFG’s parent company. Through this move, Shuaa has raised its authorised capital from Dh1.065 billion to Dh2.535 billion. This is finalising of an agreed deal the deal was done outside of market hours based on the previous day’s closing price, Mohammad Ali Yasin, chief strategy officer at Al Dhabi Capital told Gulf News.
Shuaa shares closed 0.21 per cent lower at Dh0.968, while the DFM General Index closed 0.22 per cent lower at 2,790.71. The index, which made gains in July, has witnessed a sell-off along with international and other emerging markets as traders repositioned themselves following a rate cut by the US Federal Reserve and amid heightened trade war tensions. The index shed 2.76 per cent of its value in August to date after gaining 12.18 per cent since January. The double-digit gains make it the best performing regional equity market. I’m still not worried about a correction in the UAE, said Yasin. “It’s a correction on the upside. If we see an upside in international markets we may see an upside here.
“We are one of the cheapest in the emerging markets space. We are getting to a amicable resolution on the geopolitical front, when we may see more upside. Towards the end of the month, we may see a calming of volatility.” In stock specific action, Emaar Properties closed 0.77 per cent lower at Dh5.13, while Emaar Malls was 2.11 per cent lower at Dh1.86. First Abu Dhabi Bank dipped 0.40 per cent lower at Dh14.94. Meanwhile, the Abu Dhabi Securities Exchange general index closed 0.23 per cent lower at 5,027.62 on Monday.