By: Mahmoud Gamal
Dubai-Mubasher: Leading stocks listed in the Dubai Financial Market (DFM) saw huge losses since the beginning of 2016, amid political instability in the region, risks facing China's economy, lower oil prices and fluctuating global markets.
During the first seven trading sessions of 2016, five blue-chip stocks shed AED 10.23 billion, representing 62.2% of the market’s AED 16.4 billion losses
The losses are mainly attributed to selling pressures by traders who were affected negatively by the external factors, analysts told Mubasher.
Etisalat topped decliners after seeing AED 4.65 billion losses, falling 10.2% to AED 5.12.
Commenting on Etisalat, capital market analyst Tariq Issawi said that the stock was mainly weighed down by the decline of Chinese stock markets and the New Year's Eve fire at the Address Downtown Dubai hotel.
Emirates NBD ranked second in the list of top losers by AED 2.7 billion, followed by Dubai Islamic Bank, Dubai Investments and Arabtec Holding at AED 2.09 billion, AED 607.44 million and AED 92.3 million.
Despite the banking stocks’ losses, investors consider them as a safe haven on the medium and long term, added Issawi.
He noted that the outlook for DFM is not positive so the market is likely to see a negative performance.
The general index lost 6.6% or 208 points in the past seven sessions to reach 2,942.24 points.
Translated by: Julian Nabil
