Dubai – Mubasher: The Dubai Financial Market (DFM) ended Sunday in the red following negative performance in its leading sectors especially real estate, banks, investment and telecom.
The DFMGI lost 0.49% or 20 points and closed at 4,068.92 points, its second decline in a row. Turnover dropped significantly to AED 441.52 million as 335.85 million shares were traded against AED 751.7 million with 539.8 million shares traded on Thursday.
Analysts told Mubasher that second quarter financial expectations for UAE-listed companies are expected to be the main driving force for the markets in the coming period amid anticipation for any catalysts to help the market exit the current state of calm.
The services sector led fallers, shedding 1.28% as Amanat Holdings topped local decliners, sliding 1.84%. The telecom sector followed, losing 0.75% as du saw a similar retreat to AED 5.320.
Market analyst Waddah Taha commented that hesitation controlled UAE market performance on Sunday amid anticipation for developments related to the Greek financial crisis, which is affecting global and regional markets.
The ADX found strong support from its blue-chip stocks Etisalat and Dana Gas, as the latter soared following a court ruling, Taha told Mubasher, adding that the DFM’s Drake & Scull International (DSI) witnessed significant activity after the decision to allow GCC nationals to own up 100% of the company’s stocks.
The investment sector followed closely, dropping 0.72% as Dubai Investments (DI) and DFM Company slipped 0.7% and 1.03%, respectively.
The banking sector was down 0.56% as Emirates NBD and Dubai Islamic Bank (DIB) lost 1.01% and 0.6%, respectively. The real estate sector shed 0.55% as Arabtec and Emaar Properties slipped 0.77% and 0.64%, respectively.
Taha added that revising the weights of companies in the DFMGI affected performance, especially since the revision resulted in increasing the real estate sector’s contribution to the index by almost 45%, making it the controlling sector in the market.
Local markets are currently relying on external factors to a great extent especially in the absence of internal market-boosting catalysts; however, as the season for announcing companies’ financials approaches, the situation will change and results will control market performance, the analyst noted.
Taha said he expects markets to continue being affected by external factors, particularly the developments in Greece and oil prices as well as the announcement of US interest rates.
The DFM previously closed Thursday at a marginal decline, after the banking sector’s gains reduced the market’s losses towards the end of the session.
Translated by: Nada Adel Sobhi
