By: Mahmoud Gamal

Dubai – Mubasher: The Dubai Financial Market’s (DFM) general index dropped 0.23% or 7.7 points on Tuesday to close at 3,409 points, registering its fifth successive loss on the back of the real estate sector.

The DFM continued its downward course, pressured by the decline of the real estate sector’s stocks, vice president of Investment Research at KAMCO Raed Diab told Mubasher.

Drake and Scull International's (DSI) stock topped the DFM’s losers, shedding 1.68% to AED 1.75, while Emaar Properties levelled down 1.3% to AED 7.6 and Union Properties fell 0.4% to AED 0.81.

Investors’ reluctance to buy stocks was evident today, Diab continued, adding that such a drop on the DFM was unjustified, especially as many stocks have already fallen to attractive prices.

We could see some buying transactions in the coming session due to the ordinary correction, but it is too early to back the hope that the negative performance will come to an end, Diab explained.

Technically, the DFMGI stabilises above 3,365-point support, where any breaking below will drag it to its lowest level in 2017, the analyst added.

Meanwhile, the general index eyes some close resistances, like the 3,430-point and 3,460-point ceilings, Diab stated, noting that breaking above 3,505 points is critical for reversing the decreasing trend.

The DFM’s trading volume declined to 155 million shares on Tuesday from 199.8 million shares on Monday, while the market’s turnover dropped to AED 352.11 million, compared to AED 408.3 million in the previous session.

Translated by: Muhammad Khalid