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DFM falls to 5-week low on Wed

DFM falls to 5-week low on Wed
Photo Credit: Arabianeye-Reuters

 

By: Thabet Shehata

Dubai – Mubasher: The Dubai Financial Market (DFM) recorded its fifth successive-session decline after closing in the red on Wednesday following pressures in the real estate and investment sectors, overcoming gains in the banking sector.

The market’s general index (DFMGI) lost 0.27% or 10.12 points to 3747.38 points, falling below the level of 3750 points, recording its lowest level in five weeks or since 29 January, when it closed at 3674.4 points.

Analysts had told Mubasher that for the DFM, falling below the support level will open the door for continued market declines to 3600 points. But should the market hold, it may leap to 3950 or 4000 points.

Reda Muslim, managing partner at Truth Economic Consultants, commented that UAE markets are enduring a state of anticipation, which is clear in the declining liquidity levels.

Most investors do not see good opportunities in the markets amid the current fluctuations and lack of clarity, which are keeping investors at bay, he told Mubasher exclusively.

The DFM’s declines on Wednesday were accompanied by a slight improvement in liquidity compared to Tuesday. However, it remains low. Turnover reached AED 476.7 million today as 353.3 million shares were exchanged against AED 409.65 million as 261 million shares were traded on Tuesday.

Most of the cash dividends distributed lately have been used to cover financial positions for some investors, Muslim noted, adding that this is the reason why these dividends have not been returned to the market.

The investment sector led losers, falling 1.95%, followed by the real estate sector which lost 1.3%. On the other hand, the consumer staples sector topped gainers, surging by 9.27%, while the banking sector increased by 0.32%.

On the stocks level, Dar Takaful was the highest loser, plunging by 8.7%, while Dubai Investments, Emaar, Arabtec and Dubai Islamic Bank (DIB), fell 2.1%, 1.34%, 0.68% and 0.45%, respectively.

Dubai Parks & Resorts ranked highest gainer, soaring by 11.25%, while Emirates NBD added 1.33%.

Muslim told Mubasher he expects UAE market fluctuations to continue till the end of March until new elements emerge that can attract investors.

 

Translated by: Nada Adel Sobhi