By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market general index (DFMGI) dropped 0.79% on Sunday to close at 3,643.69 points, weighed down by profit-taking.
Despite the “significant” increase in the market’s liquidity on Thursday and the DFMGI's close at a positive level above 3,670 points, the market did not extend this positive performance on Sunday, Namaa Zone CEO Iyad Aref told Mubasher.
The main index grew to 3,684 points, then profit-taking began to dominate the market, Aref added, noting that the DFMGI returned to the 3,640-point level, which happens often once declines begin.
The DFM’s trading volume dropped to 270.14 million shares on Sunday from 709.41 million shares on Thursday, while turnover more than halved to AED 413.82 million from AED 919.37 million in the previous session.
Some blue chips dragged down the market, led by Emaar Properties, which shed 2.06% after the company’s ordinary general meeting (OGM) decided to sell 30% of Emaar Development on the DFM.
The Commercial Bank of Dubai (CBD) decreased by 2.5%, while DFM Company and Dubai Investments went down 0.8% and 0.4%, respectively.
The market is about to undergo a correction during the week ending 26 October following the gains which occurred earlier this month, the analyst noted.
The DFM’s resumption of positive performance is contingent on the main index's return to 3,589 points and 3,606 points, Aref added.
Markets normally are affected by companies' disclosure of their financial results and, usually, prices begin to rise before the disclosure, the analyst said, noting that once the positive expectations are confirmed and a company's results are announced, the stock rises marginally before profit-taking begins.
The profits of six UAE-listed banks recorded 15% increase in the third quarter of 2017 to reach AED 2.31 billion, compared to AED 2.01 billion in the year-ago period.
On the other hand, some stocks shrugged off the DFM's negative performance and grew, led by GFH, which levelled up 1.8%.
Translated by: Muhammad Abdulwakeel
