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Strategies & Market Trends : Picks of the quarter -- Ignore unavailable to you. Want to Upgrade?

To: tejek who wrote (4825)	1/22/2008 2:21:04 AM
From: Elroy	Read Replies (2) \| Respond to of 20435

Futures hit limit downs so you need information about spot prices. I am not sure what you mean. I think he means futures (which are indicating where the various markets are likely to open) can only fall a certain % from the previous day's close, and then can't fall further. So if the market is really going to open below the max decline allowed by the futures contract (the "limit down"), the futures won't reflect that since they cannot go that low. In the UAE there are limit ups and limit downs of 10% on each stock. So if a stock closed at 10 yesterday, it can't go above 11 (limit up 10%) or below 9 (limit down 10%) today.

To: tejek who wrote (4825)	1/22/2008 2:27:05 AM
From: Elroy	Read Replies (1) \| Respond to of 20435

UAE shares continue to decline on panic selling By Ahmed A. Elewa, Staff Reporter Published: January 21, 2008, 15:06 gulfnews.com Abu Dhabi: Panic selling continued to drag UAE markets down on Monday wiping out Dh29.44 billion in market capitalisation, raising the losses in terms of market value to more than Dh81 billion since the beginning of the downtrend last Wednesday. Of this, Dh55.8 billion was recorded in the last two sessions. Dubai Financial Market incurred the heaviest losses, as heavy weights defended their positions in Abu Dhabi. Heavy losses were recorded in the real estate and energy sector in Abu Dhabi. "Dragging the prices down at this stage represents an opportunity, given the better-than-expected results for most of the companies that disclosed their 2007 statements, and majority of results are yet to be announced," Mohammad Ali Yasin, managing director of Shuaa Securities, said. "The foreigners who are withdrawing now are mostly short term investors or funds seeking profit-booking or repositioning, while the long term investors are already buying cautiously to benefit from the attractive prices," he said. Nevertheless, panic selling was the norm, especially towards the end of the session. "Whenever emotions are the factor beyond selloffs, attractive opportunities occur, given that the earning power of the listed companies has not been affected by the international subprime mortgage and credit crunch," Nazim Al Qudsi, chief investment officer at the National Bank of Abu Dhabi (NBAD), said. DFM's benchmark nosedived more than four per cent to close at 5,630.22, dragged by Emaar Properties' strong losses for the second consecutive session. The leading developer fell by 4.66 per cent to Dh13.30. Tamweel was the only company to record gains on account of its strong 2007 results, which showed 175 per cent increase in net profit. All the leading shares fell sharply to record lows. These included Amlak Finance - down 7.75 per cent to Dh4.64, DFM - down 7.33 per cent - and du which fell by more than six per cent to Dh6.25. In Abu Dhabi, the general index retreated by 1.57 per cent to 4,618.05, failing to reflect the magnitude of losses recorded due to the relatively light weight of the liquid shares in the general index. Aldar Properties, for instance, was the heaviest traded in terms of value. It dropped 5.41 per cent to Dh10.50, while Dana Gas retreated 3.75 per cent to Dh2.31. Sorouh Real Estate declined as well, by 4.14 per cent to Dh8.10. National Bank of Abu Dhabi (NBAD) and etisalat reported a much less volatile performance, with the telecommunications giant retreating 0.43 per cent to Dh23.30, while NBAD advanced by a similar pace to Dh23.95. The Emirates Securities general index fell by 3.55 per cent to 5,822.85, to record 3.21 per cent of losses since the beginning of the year. "This is not an indicator, as last year the markets were down by 14 per cent in the first quarter. Yet it ended the year with more than 45 per cent of gains," Yasin said.