Dubai Financial Market up 0.98%

Foreign investors net DFM sellers by AED 7.45 mln

Dubai Financial Market General Index (DFMGI) ended Monday’s session with a slight gain of 0.98% to stabilize at 1646.80 points. Having opened in the green, the Index moved up, hitting its intraday high of 1651.72 pts. However, it gave up some early gains till the end of trading.

The fall witnessed by the UAE bourses yesterday was not a surprise, tracking the global market slumps on Friday, CEO of Al-Fajr Securities Co., Nabil Farahat, said. ADX and DFM suffer many weaknesses that would vanish on reporting strong corporate earnings.

Despite this downtrend, sell-offs were not executed randomly, which gives a signal for potential bounce soon.

“Confusion still dominates both exchanges, as quarterly financial results are affecting the investor sentiment. Accordingly, the market is seeing lackluster trading,” an analyst at Emirates NBD said.

Financial results have matched forecasts so far, which allowed regional bourses to show stronger performance compared to last week, he added.

Trading volume rose to nearly 145 million shares, compared to 124.768 million shares yesterday. Turnover also increased to approx. AED 230.08 million, compared with AED205.219 million, generated through 3061 transactions.

Trading snapshot

SALAMA was the best performer, jumping 8.75% to AED 0.87, upon exchanging almost 12.6 million shares at a gross value of AED 10.8 million. The stock was buoyed by reporting solid financial statements.

National Cement took the second position, jumping 4.97% to AED 3.38. Takaful House followed, finishing 3.50 % higher at AED 1.48.

Emaar remained on top of most actives by traded volume and value, after exchanging over 28.5 million of its shares at a total value of AED 92.7 million. Shares of the developer shot up 1.25% to AED 3.24.

On the bleak side, Global was the top drag for the day, shedding 4.31% to AED 1.11. The stock was hurt by forecasts for incurring over KWD 120 million losses. Commercial Bank of Dubai (CBD) came second, closing 1.33% down at AED 3.70, with a traded volume of 10 thousand shares exchanged through two transactions.

Six sectors headed north, led by Materials that climbed 4.97%. Insurance took the second position, gaining 1.40%, followed by Real Estate & Construction that inched up 0.73%.