By: Mahmoud Gamal

Dubai – Mubasher: The Dubai Financial Market (DFM) closed the week ended Thursday, 17 January 2019, in the red, breaking its two-week rising streak as investors resume caution particularly towards the real estate sector following reports that the property prices are headed for more declines. This is despite forecasts of positive results for banking stocks.

The DFMGI fell 1.13% or 28.84 points to close the week at 2,516.81 points.

Commenting on the DFM’s weekly performance, senior analyst at MenaCorp Issam Kassabieh said that sales during the period were widely expected amid the absence of positive news for the real estate sector, indicating fears and concerns regarding falling prices, which may impact dividend distributions in some companies, particularly DAMAC.

The UAE’s real estate market, particularly Dubai’s, is witnessing a decline amid rising supply. In addition, dollar strength and falling oil prices seem to be having a role in the sector’s movement.

Top losers

The real estate sector led fallers, losing 4.02% after Union Properties, DAMAC Properties, and Emaar Properties nosedived 40.2%, 37.61%, and 19.5%. In addition, Drake & Scull International (DSI) and Deyaar Development dropped 9.8% and 18.32%, respectively.

Moreover, the consumer goods, insurance, and investment sectors lost 3.64%, 2.7%, and 1.26%, respectively.

DXB’s stock was among the top fallers, sliding 31.62%, while Dubai Refreshments fell 4.8%, SHUAA Capital, Dubai Investment, and the DFM Company plunged 24.77%, 20.37%, and 20.4%, respectively.

On the positive side, the banks sector was the only gainer, adding 1% after Emirates NBD grew 2.2% on the back of strong financial results and generous dividend distributions.

Translated by: Nada Adel Sobhi