By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market’s (DFM) general index lost 57.2 points, or 1.78%, to 3,149.53 points on Thursday on the back of blue chips, especially Emaar Properties.
The recent decline in the DFM is uncanny, given the recent major deal closed between Emaar Properties and Aldar Properties, disappointingly, did not add many points to the general index, technical analyst Muhammad Sabha said.
Earlier in March, Aldar Properties and Emaar Properties have created an AED 30 billion joint venture (JV), focusing on the development of master-planned destinations in national and global scales.
It would be too early to attribute Emaar’s decline to the news reporting its intention to cancel 2017 dividends, as Air Arabia, which approved the distribution of AED 467 million in cash dividends, also tumbled today, Sabha added.
We can explain what happened in today’s session in a psychological light, as manifested in a frequent example in which investors hurry to sell shares once they saw the red colour on screens, the analyst remarked.
It seems that the remedy for that situation is the institutional investors, which can boost stock prices on both Dubai and Abu Dhabi markets, Sabha commented.
The transportation sector tumbled 4.8% after Air Arabia dropped 9.3% to AED 1.17, while the real estate sector lost 2.3%, as Arabtec Holding, Emaar Malls, and Emaar Properties levelled down 3.36%, 3.15%, and 3.15%, respectively.
The consumer staples sector shed 1.19% after DXB Entertainments and Marka declined 1.13% to AED 0.526 and 0.95% to AED 0.52, respectively.
The banks sector also sank 1.11%, as Mashreq Bank plunged 9.09% to AED 70, while Dubai Islamic Bank fell 0.54%.
The investment sector decreased by 0.75% after Shuaa and Dubai Investments went down 1.87% and 0.9%, respectively.
By contrast, the telecommunication sector and its only stock, du, grew 0.2%, each.
The services sector added 0.17%, as Amanat Holdings increased by 1.5% to AED 1.31.
The DFM’s trading volume rose to 144.155 million shares from 140.9 million on Wednesday, while the market’s liquidity reached AED 259.39 million versus AED 258.2 million in the previous session.
Translated by: Muhammad Khalid
