By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) erased its early gains on Wednesday, amid quick profit-taking on some stocks.
The DFMGI fell 1.11% or 41.18 points to reach 3,678.81 points.
The market’s decline is mainly attributed to profit-taking on defensive and mid-cap stocks which rose to record levels, according to technical analyst Mohamed Sonbol.
The insurance sector led losers with a 3.55% decline as Salama Cooperative Insurance sank 6.4%. The consumer staples sector tumbled 3.29% as DXB Entertainments levelled down 3.29%.
The investment sector slid 2.1% as Al Salam Group Holding and SHUAA Capital decreased 8.1% and 5.8% respectively.
The transportation sank 1.17% after Gulf Navigation and Air Arabia levelled down 5.3% and 1.4% respectively.
On the flipside, the banks sector topped gainers with a 0.85% rise as Dubai Islamic Bank (DIB) went up 0.5%.
Trading volume reached 855.74 million shares on Wednesday, compared to 601.1 million shares on Tuesday. Turnover amounted to AED 1.48 billion, compared to AED 974.66 million.
The market’s current liquidity is speculative amid selective trading on stocks which reached attractive levels, Sonbol noted.
The main index is likely to continue its correction to reach 3,500 points, the analyst said.
Translated by: Julian Nabil
