By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) lost 0.8% or 28.86 points to close at 3,622.24 points in the week ended 2 November, weighed down by the real estate sector.
The UAE’s markets declined during the week, pressured by Emaar Properties’ stock, financial analyst Manaf Almallouhi told Mubasher.
Technically, this decline came in line with the profit-taking on the DFM and the DFMGI’s inability to break above 3,680 points, Almallouhi added.
Selling of the real estate sector’s stocks, especially Emaar Properties’, which sank 1.9%, dragged down the general index, following Emaar Development’s initial public offering (IPO).
Anticipation ahead of Emaar Properties’ financial results, which are expected to be positive, has continued to dominate the market, Almallouhi continued, noting that Emaar Properties’ stock remaining above AED 8.27 indicates the stock’s stability.
Over the week, DAMAC Properties' stock fell 1.26% to AED 3.9.
The DFM’s liquidity shrank, so the market needs higher liquidity next week, the analyst commented.
Trading volume more than halved to 623.46 million shares during the week, compared to 1.42 billion shares in the week ended 26 October, while the DFM’s turnover dropped to AED 1.22 billion versus AED 2.12 billion in the previous week.
Companies that are expecting to incur losses in the third quarter tend to delay disclosing their financials till after the disclosure period deadline, which puts more pressure on their stocks, Almallouhi concluded.
Translated by: Muhammad Abdulwakeel
