By Thabet Shehata
Dubai – Mubasher: Dubai Financial Market (DFM) moved lower in November, dragged by all leading stocks mainly Emaar, Arabtec and DIB, amid lack of new catalysts and anticipation for global economic developments.
The main index fell by 8.55% or 299 points during the month to end at 3,204.28 points, compared with 3,503.75 points at the end of October.
The UAE stock market has moved in a ‘downward’ trend lately after speculative activity that did not last for long, said Fadi Ghatis, CEO of THINK. He added that major investors are cautious, allowing for speculative dominance amid absence of institutional investment.
According to the analyst, the market may decline to the 3,000 level if it fails to steady above the support level of 3,120 points.
The market’s liquidity was slightly higher in November, as average turnover per session rose to AED 304 million from AED 290 million in October.
The average traded volume per session also rose by 18.7% to 235.28 million shares, from 198.28 million shares.
Waddah Al-Taha, analyst, said the UAE bourses’ losses were the result of a number of negative factors that dominated markets lately.
Some listed company posted worse than expected results, which negative impacted the markets. Furthermore, the continued fall in oil prices dragged bourses lower.
The real estate sector was the biggest loser with a fall of 14% after Arabtec and Emaar lost 32.5% and 10.5%, in a row.
The investment sector came second, with a decline of 11.6%, pressured by Dubai Investments and DFM Company that lost 10.2% and 16.8% respectively.
The banks sector was off 3.57% hurt by DIB and Emirates NBD that sagged 1.08% and 11% in a row.
Meanwhile, the services sector bucked the downtrend, rising 1.63%, backed by Amanat and Tabreed that gained 2.6% and 0.88% successively.
Translated by Sayed Abdel Rahman
