By: Mahmoud Gamal
Dubai-Mubasher: Dubai Financial Market (DFM) trimmed its early losses on Monday, backed by buying powers by portfolios on certain stocks against continued profit-taking on others.
The general index declined 0.24% or 7.9 points to reach 3,378.63 points.
The market’s negative performance is mainly attributed to an early decline of crude oil to below $40 on Monday, Raed Diab, Vice President of Investment Research Department in KAMCO, told Mubasher.
The main index sees resistance at 3,420 points, he said, adding that it is important for the index to break above that level to move towards 3,500 points.
The DFMGI fall below 3,250 points may increase profit-taking, which will push the index lower to 3,100 points, Diab noted.
Trading volume reached 502.35 million shares on Monday, compared to 899.74 million shares on Sunday. Turnover slid to AED 627.56 million from AED 1.01 billion.
“Tighter liquidity reflects investor caution,” he explained.
Arabtec Holding declined 3.5% to AED 1.67.
The UAE contractor’s stock was the most active after generating AED 183.7 million from the exchange of 108 million shares through 1,540 transactions.
It is important for the stock to break the resistance at AED 1.87, the analyst noted.
The support level for Arabtec’s stock stand at AED 1.53, Diab said.
Meanwhile, the consumer staples sector slid 1.5% , hurt by Marka, and Dubai Parks and Resorts which shed 2.3% and 1.5% in a row.
The real estate sector retreated 0.3% after Drake and Scull International, and Union Properties decreased 3.7% and 1.2%, respectively. On a bullish note on real estate stocks, Emaar Malls Group and Emaar Properties increased 1.4% and 0.3% in a row.
The banks sector levelled down 0.26% as Dubai Islamic Bank (DIB) edged down 0.86%.
Diab expected the market to continue its fluctuations on Tuesday.
