By: Thabet Shehata
Dubai – Mubasher: The Dubai Financial Market (DFM) ended the first session of the week in the red after shedding its morning gains during the second half of Sunday’s session amid selling pressures on banking, real estate and investment stocks.
The market’s general index (DFMGI) retreated by 17.6 points or 0.46% to 3840 points. Earlier today, the DFM gained 0.23% boosted by du, Emaar Properties and Dubai Investments.
Analysts had told Mubasher that they expect external factors to be the main driving force for UAE stock markets in the current period, particularly after most large companies have concluded announcing their financial results, with the exception of Arabtec.
The declines seen on UAE markets at the start of the week were due to the absence of catalysts after most major companies have announced their financials, commented Ehab Rashad, CEO at Mubasher for Securities, adding that markets have been undergoing a state of anticipation and caution lately as they await real incentives with which they can hold and rise.
This state of anticipation is quite evident in the retreating liquidity, he added.
Market losses were accompanied by falling liquidity as turnover reached AED 390.6 million after 271.13 million shares were traded through 3.9 thousand transactions.
The industrial sector topped losers, plummeting by 10%, followed by the services and consumer staples sectors, which lost 1.88% and 1.74%, respectively. Moreover, the banking sector lost 0.62% as Dubai Islamic Bank (DIB) and Emirates NBD fell 1.03% and 0.54%, respectively.
The real estate sector retreated by 0.3% as Arabtec lost 0.33%, added to DAMAC and Deyaar declines, whereas Emaar remained unchanged.
Arabtec’s stock ignored the awards given by Saudi Aramco and announced earlier today, Mubasher Securities CEO noted, highlighting that the reason for this was the market’s general anticipation of Arabtec’s financials which are quite late and which are pressuring the stock.
The investment sector fell 0.27% pressured by DFMC, while the telecoms sector increased by 0.2%.
It is likely that UAE markets will continue this swinging performance with stocks moving sideways as the markets await the emergence of incentives, he added.
Translated by: Nada Adel Sobhi
