By: Thabet Shehata
Dubai – Mubasher: The Dubai Financial Market (DFM) endured a fluctuating session on Wednesday, ending in the red for the tenth session in December, against only one session in the green.
The market’s general index (DFMGI) shed 1.64% or 50.69 points to 3033 point, nearing the level of 3,000 points.
The DFM saw positive performance earlier today, gaining 1.7% one hour after trading began, amid positive activity on all its main sectors, led by the real estate sector.
Analysts attributed this continued decline on the DFM to the growing rate of selling due to unjustified uncertainty and lack of confidence prompted by margin call transactions.
Commenting on the market’s performance today, UAE market analyst Wadah Taha told Mubasher Radio that the successive declines seen on the DFM have created a sort of reluctant state amongst traders, prompting them to resort to quick profit-taking in fear of a decline.
UAE markets, particularly the DFM, have become quite influenced by external factors by looking towards oil markets and US indices, added to the Saudi market performance and ignoring internal incentive, Taha highlighted.
The DFM’s losses today were accompanied by lower turnover amounting to AED 1.24 billion against Tuesday’s session which saw AED 1.27 billion. Around 725 million shares were exchanged through 11,843 transactions. Moreover, 33 companies were traded, of which 11 were in the green, 20 were in the red and two remained unchanged.
The real estate sector retreated by four percent, topping declining sectors, pressured by losses on Arabtec and Emaar Properties, which plunged 9.8% and 3.6% to AED 5.900 and AED 2.400, respectively. Deyaar Properties topped losers, plummeting by 9.9% to AED 0.585. Emaar Malls cut the sector’s losses, after rising by 5.69% to AED 2.600, topping gainers.
The investment sector ranked second, falling 3.56% as Dubai Investments (DI), DFM and Gulf Investments declined.
Taha told Mubasher Radio that he believes that the DFM is nearing its bottom. Moreover, it is expected that investment portfolios will enter and seize opportunities on the larger stocks, particularly the banking sector, which would be similar to what happened on the Abu Dhabi Securities Exchange (ADX), he added.
On the other hand, the banking sector ended in the green, rising by 1.55% supported by gains on Emirates NBD and Dubai Islamic Bank (DIB), which surged by 4.9% and 2%.
Translated by: Nada Adel Sobhi
Photo Credit: Arabianeye-Reuters
