By: Mahmoud Gamal
Dubai-Mubasher: Dubai Financial Market (DFM) saw a bearish performance in May, dragged down by selling operations and lower positions in some blue-chip stocks especially in the investment and real estate sectors.
The general index declined 5.1% or 178.2 points to reach 3,313.72 points; the second monthly decline recorded since January.
The market’s losses were mainly attributed to lower-than-expected quarterly financials and fluctuations of Gulf markets, in addition to liquidation of positions in some stock, according to financial advisor Safwat Totah.
Although price-earnings ratios of most stocks are good and their prices are attractive, news of a possible interest-rate rise along with negative performance of global markets pushed portfolio investors to keep their cash and not to increase their positions, Totah explained.
The investment sector topped losers after falling 12.7% after Dubai Investments slid 10.5%.
The real estate sector retreated 8.7% as Emaar Properties slid 8%.
The banks sector decreased 2.14% due to a decline in Dubai Islamic Bank (DIB) by 1.9%.
On the other hand, the consumer staples sector rose 11.23% as Dubai Parks and Resorts advanced 5.9%.
Turnover reached AED 7.54 billion in May, compared to AED 14.03 billion in April.
Trading volume stood at 6.41 billion shares, compared to 11.83 billion shares.
Selling pressure is likely to continue in June amid the approach of Ramadan and summer vacation, Totah noted.
The general index is likely to fluctuate if it does not exceed the level of 3,450 points, he said, adding that the index is expected to move between the levels of 3,200-3,400 points.
