By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) achieved the best annual performance since 2013 by the end of 2016.
The DFMGI increased 12% or 368.7 points to reach 3,519.71 points.
The index offset its losses in 2015 that rose to 16.5%.
The market saw trading of 95.91 billion shares compared to 97.09 million shares last year, while turnover decreased to AED 122.11 billion from AED 157.9 billion in 2015.
The real estate sector topped gainers and added 17%, backed Arabtec, Damac and Emaar which climbed 4.08%, 9.05% and 25.3%, respectively.
The transport sector hiked 10% after Gulf Navigation and Aramex surged 159.67% and 299%, respectively.
The banks sector went up 2.24% due to a rise in Emirates NBD by 14.7%.
2016 was the year of the small and medium stocks, which saw great hikes and had their affecting role in the rising market in the annual trades, technical analyst, Amin Al Henawi, told Mubasher.
SHUAA Capital topped the gaining stocks jumping 264.5%, followed by Dar Al Takaful which gained 202.66%.
Leading stocks saw mixed performance in the fourth quarter, Al Henawi added saying that Arabtec witnessed a 7% increase, after achieving the worst losses in the nine-month period which exceeded 22%.
The analyst noted that the profit earning (P/E) ratio of the listed companies on DFM recorded a rise by the end of 2016 to reach 9.29x, with expectations to continue rising to reach 9.77x next year.
Damac properties is considered of the least P/E ratio in DFM of 3.91x, while Dubai Financial Market stock came of the highest P/E ratio of 53.32x, Al Henawi mentioned.
Al Henawi pinpointed that the market is likely to see more increases in 2017, amid the focus of the investors on the small and medium stocks that reached good P/E ratios.
Moreover, technical analyst, Mohanad Al Oraiqat, commented saying that all the market's sectors are technically qualified to rise.
He added that the main index is currently able to stand above 3,600 points at the beginning of 2017, which may qualify it to reach 5,000 points through the year long.
On the monthly level, the general index rose 4.72% or 158.80 points in December, compared to 3,360.91 points in November.
Turnover decreased to AED 12.08 billion in December from AED 15.02 billion in November, while traded volume fell to 9.52 billion shares in December, compared to 12.2 billion shares in the previous month.
Translated by: Sara Ghali
