Dubai market reverses downtrend at close
By: Mahmoud Gamal
Dubai-Mubasher: Dubai Financial Market (DFM) remained unchanged at close on Monday after displaying a bearish bias in a fluctuating session.
The general index went up 0.11% or 3.9 points to reach 3,525.44 points.
Dubai market managed to rebound at close overcoming the failure of Doha talks to freeze oil production, capital market analyst Mohamed Al-Dhafiri said.
Oil-producing countries at the Doha meeting failed to reach an agreement Sunday on a production freeze as they needed "more time" to make the decision, Qatar's Energy Minister Mohammed bin Saleh Al Sada said.
Stability of the DFMGI above 3,500 points is a positive signal, Al-Dhafiri said.
Trading volume reached 575.8 million shares today, compared to 306.61 million shares on Sunday.
Turnover swelled to AED 726.26 million from AED 395.67 million.
Liquidity significantly rose as portfolio investors strengthened their positions in blue chips and mid caps, in addition to expectations of positive quarterly financials, Al-Dhafiri noted.
The services sector topped gainers with a 1.3% rise after Amanat Holdings grew 1.6%.
The banks sector recovered 1.3% as Emirates NBD gained 2.5%.
The telecom sector levelled up 1.14% due to an increase in du by 1.14%.
On the flipside, the investment sector slid 0.7% after Dubai Investments went down 0.8%.
The real estate sector decreased 0.6%, stifled by Emaar Properties and Arabtec Holding which lost 1.3% and 0.6% in a row.
Emaar’s stock reached above AED 6.4 giving a positive signal, Al-Dhafiri said, adding that it is likely to rise further after the firm’s dividend proposal for 2015 received the shareholders’ nod.
Arabtec Holding is also expected to see an uptrend after its break above AED 1.70, according to the analyst.
Al-Dhafiri advised traders to diversify their investments focusing on safer stocks of firms which depend on operating profits, along with speculative stocks.
