By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market’s (DFM) general index dropped to its lowest level in four months on Wednesday, in line with selling pressure and the volatile situation in the GCC, which overwhelmed investors.
The DFMGI lost 1.89% or 65.78 points to close at 3,414.92 points.
The decline seen on the DFM on Wednesday was based on inaccurate information regarding the anti-corruption measures taken by Saudi Arabia against businessmen who have links to UAE-listed companies, said Fadi El Ghattis, MindCraft Consultants’ CEO.
Many Saudi portfolios exited the DFM after the names of more people accused of corruption were disclosed, El Ghattis told Mubasher.
National Central Cooling Company (Tabreed) topped the market’s losers, sinking 6.37% to AED 1.91 after the company reported a decline in third-quarter net profits.
The cautious trading on Wednesday was unjustifiable as there were no official information or statements support the predictions circulating in the market and related to the Saudi anti-corruption measures, the analyst commented.
El Ghattis stated that investors should abandon the strong selling trend in the market, as the UAE’s economy is in good condition and companies see better financial results, as is the case with Arabtec Holding’s results.
DAMAC Properties' stock tumbled 4.7% to AED 0.475, while Arabtec Holding's stock fell 4.5% to AED 2.73 despite its positive quarterly results.
The DFM’s trading volume soared to 310.66 million shares compared to 220.42 million shares on Tuesday, while the market’s turnover increased to AED 527.7 million versus AED 435.13 million in the previous session.
Translated by: Muhammad Abdulwakeel
