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Speculations force DFM to cut most gains

Speculations force DFM to cut most gains
By: Thabet Shehata
Dubai- Mubasher: The Dubai Financial Market (DFM) cut most of its gains at the closing of Monday’s session due to being affected by intense speculation on leading stocks particularly those in the banking and investment sectors, according to analysts.

The market’s general index (DFMGI) closed at 0.13% or 4.16 point gain, closing at 3325.5 points.

The DFM witnessed a significant rise at the start of Monday’s trades, rising to the level of 3479 points, with gains reaching five percent.

Experts had said that they believed that UAE markets will rebound starting Monday, after the decline in margin call operations and prices reaching attractive levels. Speculations and margin calls may return to control the markets once more, they added.

UAE markets are expected to rebound starting Monday, Amer Saad, deputy trading manager at Al Mal Capital, told Mubasher in a comment, adding that oil prices are expected to hold in the coming period, which is expected to have a positive effect on the UAE markets and cut down some of the pressure on their performance.

The DFM closed in the green on Monday despite a slight decline in liquidity compared to Sunday’s session with turnover reaching AED 1.17 billion today against AED 1.2 billion yesterday.

Trading Manager at Daman Securities Walid Al Khateeb told Mubasher that the rebound that commenced at the start of Monday’s session was logical following the massive declines incurred by the UAE’s stock markets recently.

The fact that UAE markets could not maintain their gains till the end of the trading session is an indication that the markets are weak, Al Khateeb further told Mubasher, adding that overall negative trend and the speculations added to the absence of traders has resulted in weak demand in the markets following the losses.

The real estate sector held well on Monday, rising by 1.75% to rank second gainer, supported by Emaar Properties, which added 2.26% to AED 6.800, alongside gains by Arabtec Holding and Emaar Malls Group.

The consumer staples sector topped gainers, surging by 4.43% as Marka rose by 4.67%. On the other hand, the banking sector topped decliners, retreating by 1.7% as Emirates NBD led losers, plunging by 9.64% and closing at AED 6.750.

In his statement to Mubasher, Al Khateeb noted that he expects this negativity to continue on Tuesday. He hopes that losses will be limited so as not to enter into margin call operations once again.

Translated by: Nada Adel Sobhi


Photo Credit: Arabianeye-Reuters