By: Mahmoud Gamal
Dubai-Mubasher: The Dubai Financial Market (DFM) trimmed its losses at close on Sunday, amid portfolio investors’ tendency to purchase selective defensive stock in the services and transportation sector.
The general index fell 0.06% or 1.95 points to reach 3,490.27 points.
The market’s losses were narrowed by the rise of services and transportation sectors by 1.4% and 1.38% respectively, in line with the increase of Amanat Holdings and Aramex by 1.43% and 3.9% respectively.
The telecom sector led losers after falling 0.75% as du went down 0.75%.
The banks sector also decreased 0.33% due to a decline in Dubai Islamic Bank (DIB). Likewise, the consumer services sector slid 0.02% as Marka closed lower.
Trading volume reached 184.08 million shares on Sunday, compared to 261.35 million shares last Thursday. Turnover stood at AED 232.27 million, compared to AED 357.54 million.
Portfolio investors directed their investment to build new positions in defensive stocks like Amanat, Aramex and Air Arabia, thus pushing the market to close with lower losses, according capital market analyst Gamal Abdel Hamid told Mubasher.
Despite the market’s slight decline, its general performance is positive especially amid strong expectations that global stock markets and oil prices are likely to decline after news of a potential production freeze in September.
The decrease of positions in Arabtec Holding and DIB which declined 0.7% pushed the market to close in the red, Abdel Hamid added.
Closure of the DFMGI below 3,500 points is likely to push it to rebound and rise to 3,520 points, Abdel Hamid noted.
The analyst expected the UAE markets to see a volatile performance despite the portfolio investors’ desire to build up new positions in blue chips and medium caps.
Translated by: Julian Nabil
