By: Mahmoud Gamal

Dubai – Mubasher: The Dubai Financial Market’s (DFM) general index shed 0.2% or 6.4 points to close at 3,416.72 points on Monday on the back of selling pressure.

Since the beginning of the week, selling pressures have increased across the UAE’s bourses due to cautious trading, capital market analyst Bayan Nabil told Mubasher.

Investors’ concerns have emerged after the DFMGI failed to break above the 3,503-point resistance, despite the rise in liquidity, Nabil added, noting that selling pressure weighed on the real estate sector.

Arabtec Holding sank 2.8% to AED 2.45, while Emaar Properties and DAMAC shed 1.16% and 0.8% to AED 7.68 and AED 3.38, respectively.

Emirates Investment Bank topped the DFM’s losers, levelling down 10% to AED 401.4.

Traders' concerns were augmented as a result of the unstable global markets, as well as the uncertainty regarding the Saudi market, Nabil continued.

The analyst referred to the current rise in gold prices, which was translated by some observers as an indicator of anticipation and instability in stock markets in general.

Technically, closing below 3,444 points is a negative sign, Nabil stated, adding that the DFMGI should stabilise between 3,407 points and 3,416 points to test resistance at 3,465 points and 3,481 points.

If the general index break above these levels, it will test resistance at 3,504 points, Nabil added.

As explained in previous analyses, the DFMGI’s drop below 3,550 points and 3,600 points, which reflected a great weakness in the index, will qualify it to see support at 3,307 points and 3,220 points, the analyst concluded.

The DFM’s trading volume reached 199.8 million shares, while the market’s turnover hit AED 408.3 million through 2,652 transactions.

Translated by: Muhammad Khalid