By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) fell in the week ended 6 December, marking its fourth weekly drop in a row.
The DFMGI plunged by 3.31% or 88.39 points to close at 2,580.27 points, its sharpest fall since August, amid strong selling on blue chips as investors look to neighbouring and global markets and decisions by the Organization of Petroleum Exporting Countries (OPEC).
The investment sector weighed heavily on the DFMGI, sliding 9.8% after Dubai Investments and the DFM Company sank 10.87% and 8.24%, respectively.
The real estate sector fell 7.7% during the week after Union Properties, Emaar Properties, Arabtec Holding, and Emaar Malls plunged 13.9%, 7.61%, 7.25%, and 8.6%, respectively.
The consumer staples sector declined 6.38% on the back of DXB’s 7.25% drop, while the insurance sector tumbled 3.7% after Salama and AMAN lost 7.36% and 3.64%, respectively.
In addition, the transport sector shed 1.91% after Gulf Navigation and Air Arabia’s stock lost 5.61% and 2.91%, respectively, while the banks sector decreased 0.87% as Dubai Islamic Bank (DIB) lost 1.71%.
Commenting on the DFM’s weekly performance, head of research at KAMCO investment Raed Diab noted that the DFM was still under pressure amid lacking incentives and low liquidity, indicating that a rise in turnover would stop the extended fall seen in the week’s trading sessions.
He added that the DFM’s stocks, particularly real estate stocks, were under significant pressure.
Stocks have fallen to significantly low and attractive prices, which should entice investors to build new positions on the short-term, Diab told Mubasher.
He further noted that investors were cautious at this time following the drops seen across global markets and as news reports indicate a possible truce in the trade war between China and the United States.
Translated by: Nada Adel Sobhi
