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Real estate stocks drag DFM down in week

Real estate stocks drag DFM down in week
The DFMGI lost 0.46% or 16.85 points (Photo Credit: Arabianeye-Reuters)

By: Mahmoud Gamal

Dubai – Mubasher: The Dubai Financial Market (DFM) concluded the week ended 23 February in the red, on the back of pressure from its leading sectors, particularly banks and real estate.

The general index (DFMGI) lost 0.46% or 16.85 points and closed at 3,633.91 points.

The banks sector led fallers, shedding 1.72% after Emirates NBD slid 5.41% and GFH Group was down 0.7%.

The real estate sector levelled down 0.72% after Arabtec plunged 8.17%, followed by Drake & Scull International (DSI) and Emaar Properties, which declined 2.6% and 0.65%, respectively.

Commenting on the DFM’s weekly performance, market analyst Mohammed Sonbol told Mubasher that the state of uncertainty as well as the unexpected negative results for Arabtec were the main reasons behind the weekly drop.

Last week, Arabtec Holding reported widening its losses by 99% year-on-year in the fourth quarter of 2016 to AED 2.99 billion ($813 million) from AED 438 million ($119.216 million) in Q4-15.

Annually, the Dubai-listed developer posted AED 3.512 billion in losses compared to AED 2.778 billion in 2015.

Sonbol advised traders to wait until Arabtec’s restructure and recapitalisation are over before reinvesting in the company.

The investment sector lost 0.25% after DFM Company dropped 6.45%.

Turnover was down this week to AED 2.68 billion from AED 2.71 billion last week, while traded volume reached 2.33 billion shares against 2.14 billion the week before.

The DFMGI is likely continue its decline towards 3,450 points, the analyst told Mubasher.

 

Translated by: Nada Adel Sobhi