By: Bedour Al Raie
Dubai – Mubasher: The Dubai Financial Market (DFM) finished November in the red after losing 115.94 points, or 4.16%, to 2,668.66 points, recording its monthly sharpest loss in five months, or since June.
The DFM’s market capitalisation retreated AED 10.33 billion, reaching AED 355.649 billion, compared to AED 365.976 billion during October.
In November, the DFM saw trading of 2.35 billion shares, down from 3.67 billion a month before, while liquidity slumped to AED 3.18 billion, from AED 3.83 billion.
Market performance
Commenting on the DFM’s weakly monthly performance, Al Safwa Mubasher Financial Services CEO Ehab Rashad attributed the main reason for the monthly fall to losses in neighbouring and global markets, which coincided with warnings regarding the global economy’s status.
The decline in oil prices also played a role in the DFM’s monthly fall, Rashad noted, adding that talks about trimming output and ongoing market instability have impacted prices.
Along with ongoing restructures in several firms, several companies also reported unexpected results for the first nine months of the year, pressuring investor sentiment, Rashad told Mubasher, indicating Marka, whose losses have exceed 99% of capital and would discontinue operations.
Rashad forecast that the situation would improve in December after financial markets absorb the upcoming decision by members and non-members the Organization of Petroleum Exporting Countries (OPEC) regarding oil output and prices.
Recent UAE government decisions will attract foreign investment along with facilities and visas offered to investors are likely to have a positive impact in the medium-term on the UAE’s bourses, Al Safwa Mubasher’s top official highlighted.
The consumer staples sector slid 19.50% as DXB Entertainments’ stock fell 21.65%, while the real estate sector decreased 8.37% after Emaar Properties’ stock levelled down 11.76%.
The banks sector inched down 0.37%, as Emirates NBD’s stock declined 1.08%, whereas the telecommunication sector and its only stock, DU, went up 1.43%, each.
