By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) closed the week ended Thursday, 27 December 2018 in the red, marking its six straight weekly decline in a row.
The DFMGI dropped 2.93%, shedding 74.63 points to close at 2,496.49 points, its lowest level in five years.
The consumer staples and insurance sectors weighed heavily on the DFMGI, after sliding 12.1% and 6.8%, respectively, after DXB and Gulfa Mineral Water retreated 13.86% and 10.98%, respectively, while Dubai Islamic Insurance and Salama Insurance plunged 20% and 13.65%, respectively.
The real estate sector decreased 4.45% after DAMAC Properties slid 16.28%, while Arabtec Holding and Emaar Properties lost 10.14% and 4.32%, respectively.
The banks sector was also down 2.73% after Emirates NBD and Dubai Islamic Bank (DIB) dropped 4.12% and 2.72%, respectively, whereas Mashreq Bank jumped 8.33% during the week. Similarly, the transport sector fell 2.07% after Gulf Navigation plunged 18.4%, while Aramex lost 2.9%.
Analyst comment
Commenting on the DFM’s weekly performance, Raed Diab, head of research at KAMCO, said that the strong rebounds seen in US markets were likely to entice investors to build investment positions particularly after blue chips had fallen to attractive price levels.
Should global, and particularly US, conditions stabilise along with a recovery in oil prices, it is expected that investment portfolios would re-enter the market, the analyst told Mubasher, indicating that a rise in oil prices would be beneficial to regional governments and stocks.
From a technical perspective, Diab said that the DFMGI would see first resistance at 2,510 points, which upon gaining momentum would retouch the level of 2,603 points. However, a fall below the resistance level may prompt further declines towards 2,400 points or even 2,300 points, he concluded.
Translated by: Nada Adel Sobhi
