By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial market (DFM) closed the week ended Thursday, 13 April, in the red, pressured by its leading sectors particularly real estate and investment.
The DFMGI shed 1.6% or 57.01 points, closing at 3,509.34 points.
The industrial sector led fallers, sliding 11.4% after National Cement's stock suffered a similar drop.
The consumer staples sector declined 4% after DXB retreated 4.4%.
The real estate sector shed 2.61% on the back of a number of its stocks, as Emaar, Deyaar and Arabtec tumbled 4.48%, 4.67% and 2.95%, respectively.
Moreover, the investment sector levelled down 2.12% after DFM Company and Dubai Investments lost 3.94% and 1.18%, respectively.
Commenting on the DFM's weekly performance, technical analyst Salam Saeed told Mubasher that the main reason behind the decline was the lack of clarity concerning the geopolitical situation between the US and North Korea on the one hand, and the US and Russia on the other.
Turnover fell during the week to AED 1.12 billion from AED 1.56 billion the week before, while traded volume dropped to 888.05 million shares from 1.27 billion shares a week ago.
The unexpected rise in banks' profits as well as oil maintaining its position above $50 per barrel were ineffective, the analyst said, indicating that the low turnover and overall trades were evidence of this ineffectiveness.
Investors have begun resorting to safe havens such as gold, Saeed told Mubasher, expecting the DFM to continue in its current trend until the geopolitical situation and external factors stabilise.
Technically, the DFM cannot maintain the level of 3,550, making it probable that the index will drop towards 3,490 and 3,470 points in the coming period, he added.
These anticipated declines are likely to attract speculators in the coming period, Saeed stated, advising investors to be cautious.
Translated by: Nada Adel Sobhi
