By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) closed Tuesday in the red, pressured by Emaar Properties’ stock while shrugging of the newly-listed Khaleeji Commerical Bank (KHCB), which marked the first dual listing since November 2016.
The DFMGI shed 0.37% or 12.60 points and closed at 3,359.18 points.
The real estate sector fell 0.74% after Emaar Properties lost 0.7% to AED 6.98.
Despite the new listing of KHCB, the GFH subsidiary, the DFM continues to lack positive momentum, vice president of Investment Research at KAMCO Raed Diab told Mubasher.
He added that many had expected the new listing to give the DFM a boost.
On its first day of listing on the DFM, Bahrain-based KHCB’s stock jumped 14.6%, whereas GFH’s stock ended the session down 0.7%. Similarly, the banks sector closed in the red, slipping 0.27%.
On the other hand, the investment sector led risers, adding 0.64% after DFM Company increased 0.83% to AED 1.12.
There is a strong need for new market-boosting catalysts to bolster the DFM’s liquidity, the analyst said, noting that this is despite several stocks reaching attractive price levels.
The DFM’s turnover amounted to AED 348.95 million on Tuesday, down 2.2% from AED 356.84 million on Monday, while traded volume declined 16.5% to 159.81 million shares traded versus 191.4 million shares in the previous session.
From a technical perspective, Diab told Mubasher that a drop below 3,355 points will prompt further weakness towards 3,315 points.
We may see some increased buying in the coming short period after a wave of declines as part of a technical correction, the analyst noted, indicating that the DFMGI’s passing of 3,415 points is a positive indicator that may prompt further gains towards 3,455 points.
Translated by: Nada Adel Sobhi
