By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) concluded the month of May in the red, pressured by blue chips and a rise in selling, particularly those in the investment and real estate sectors.
The DFMGI shed 2.2% or 75.6 points to close May at 3,339.37 points. Turnover during the month amounted to AED 6.7 billion, up from April’s AED 5.4 billion. Similarly, traded volume increased to 5.4 billion shares from 4.32 billion the month before.
Commenting on the DFM’s monthly performance, Raed Diab, head of investment research at KAMCO, noted that UAE markets suffered declines in May on the back of significant losses incurred on the DFM in the second half of the month.
The month of Ramadan also had a negative impact on investor sentiment, prompting lower trading and higher profit-taking, the analyst told Mubasher.
The investment sector led fallers in May, sliding 4.4% after DFM Company retreated 5.2% and Dubai Investment lost 1.2%.
The banks sector shed 1.02% after Emirates NBD declined 2%, while the real estate sector decreased 0.73%, weighed down by plunges in Drake and Scull International (DSI) and Arabtec by 21.6% and 17.9% during the month.
DXB’s near 22% drop in May on the back of fewer visitors also pressured the DFMGI significantly, Diab highlighted.
From a technical perspective, however, the analyst noted that the DFMGI has somewhat recovered from its record low this year of 3,287 points, indicating that it is too early to predict whether the declines have come to an end or not.
Translated by: Nada Adel Sobhi
