By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market’s (DFM) general index dropped to its lowest level in approximately a year and a half in the week ended 9 November.
The DFMGI lost 4.76% or 172.43 points to close at 3,449.81 points.
The big declines seen over the week resulted from a variety of factors, some of which were related to the disclosures of some companies that fell short of expectations, whereas others were due regional geopolitical events, market analyst Amin El-Hennawy told Mubasher.
Making things worse, the DFMGI broke below the main support at 3,560 points, El-Hennawy added.
The selling pressure weighed the real estate sector’s stocks, with Drake and Scull International (DSI) having the lion's share of losses, sinking 13.06% to AED 1.73, while DAMAC Properties retreated 7.9% to AED 3.59 and Emaar Properties fell 6.14% to AED 7.8.
The DFM’s trading volume reached 942.71 million shares, versus 623.46 million shares in the week ended 2 November, while the market’s turnover increased to AED 1.68 billion, compared to AED 1.12 billion in the previous week.
Will the losing trend continue to next week?
The DFMGI’s decline will not continue in the next week, on the contrary, the market will see increases in line with the correction, with the general index aims to reach 3,540 points, El-Hennawy continued.
The prices of many stocks reached attractive levels, which will encourage investors to enter the market to benefit from the stocks' low prices and generate significant gains, El-Hennawy added.
The DFMGI is fluctuating between the 3200-point and 3700-point levels, the analyst explained.
These levels were dominating the DFMGI since 2016, which means that its losses are about to come to an end, as they are approaching their lowest level.
The gradual growth of trading volumes and values is evidence that the market has been seeing stock collection in the current period.
Translated by: Muhammad Abdulwakeel