By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) ended August on a positive, extending its rise for the third month in a row on the back of strong selective buying.
In August, the DFMGI gained 0.12% or 4.37 points, closing at 3,637.55 points.
The DFM’s market capitalisation gained AED 5.22 billion to reach AED 378.12 billion in August, compared to AED 372.9 billion in July.
The selective buying seen on some leading stocks, especially Emaar, pulled the market out of its forecasted decrease during the month, general manager of Al Sharhan Stock Centre Jamal Ajaj told Mubasher.
The profits of the 110 companies listed on the UAE’s stock markets reached AED 31.9 billion by the end of the first half of 2017, compared to AED 32 billion in H1-16.
The real estate sector rose 0.64% as Emaar Properties and Damac Properties stocks increased 3.25% each during August.
The banks sector went up 0.54% after Emirates NBD’s stock levelled up 4.4%, while Dubai Islamic Bank’s (DIB) stock edged up 0.16%.
The UAE’s bourses saw jittery performance in August, especially after the period of disclosing financial results was concluded, negatively impacting the markets.
Ajaj forecasted that UAE market performance will improve during September, as investors are expected to buy stocks which reached low levels and after the end of the summer and Eid Al Adha holidays.
The UAE’s Securities and Commodities Authority (SCA) stated that Eid Al Adha holiday for the markets will start on Thursday, and end on Sunday. Trading activities will resume on Monday, 4 September.
The markets went up in August and are likely to continue rising on the medium term, despite a lack in liquidity and catalysts, Ramy Rashad, head of advisory at AI Safwa Mubasher Financial Services said.
The drop in trading volumes affirms that the rising trend will not continue in the coming period, Rashad added, noting that liquidity was distributed between leading and small stocks.
Month-on-month, the DFM’s traded volume reached 2.9 billion shares, against 4.07 billion shares, while liquidity decreased to AED 4.35 billion, from AED 6.03 billion.
The DFM’s failure to maintain its position above 3,560 points may push the index down to the level of 3,400 points.
Translated by: Mohamed Hesham Azab
