By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market’s (DFM) general index shed 11.36 points, or 0.36%, to 3,103.8 points on Monday, pressured by blue chips.
Investors became less confident about the UAE markets, which in return dragged the two bourses down in the last period, managing director of asset management at MENACORP Tariq Qaqish told Mubasher.
The decline in Dubai- and Abu Dhabi-listed stocks is at odds with the growth of the national economy in a way that propel government entities to interfere and encourage investors to pump more funds into the Emirati exchanges, Qaqish added.
Talking about government interference, I was referring to the Saudi Stock Exchange’s (Tadawul) experiment, in which the government worked on lifting investors’ morale through releasing positive reports regarding the efficiency of the domestic markets.
The consumer staples sector lost 2.5% after DXB Entertainment reached 2.67% to AED 0.51, while the services sector went down 2.28%, as Amanat Holdings dropped 3.37%.
The investment sector sank 1.7% after Dubai Investments levelled down 2.3% to AED 2.11.
The telecommunication sector and its only stock, du, fell 1.6%, while the banks sector declined 0.74% after Dubai Islamic Bank (DIB) lost 1.3% to AED 5.29.
On the other hand, the transportation sector grew 1.58%, as Air Arabia added 2.6% to AED 1.19.
The real estate sector gained 0.18%, as Emaar Properties rose 1.2% to AED 5.8.
The DFM’s trading volume increased to 144.81 million shares from 99.66 million on Sunday, while the market’s liquidity surged to AED 247.65 million through 1,000 transactions, versus AED 147.5 million in the previous session.
The DFM’s liquidity is still stood at lower levels, which is uncanny, Qaqish continued.
It is advisable for investors to buy operative stocks – whose prices retreated significantly – and using thereof to build new positions when applicable, the analyst said.
Translated by: Muhammad Khalid
