The property developer has plunged 52 per cent this month and
The DFM index fell 6.68 per cent to 4,009.01 points. The index has dived around 8.7 per cent during intra trade and recovered slightly towards the close, hitting a high of 4,320.39 and a low of 3,923.17 points.
Property-related shares took a beating across both the bourses and forced
Of the 35 companies traded in
About 220.59 million shares worth Dh513.23 million were traded.
He said that
"What we are seeing today is a reversal of the trend and a panic selling, in addition to triggering margin calls," he said.
Four shares hit the 10 per cent daily cut-off limits —
The index entered a bear market from Sunday after falling 20 per cent from a
"The market sentiment is deteriorating due to couple of reasons, mainly
When asked whether the panic selling will continue, he said it depends on the market conditions. It is difficult for anyone to predict. The next support level should be at 3,800 points.
"Right now, negative sentiment is controlling the market. If we can see a consolidation at the support level, then we could see a recovery," Shuraab said.
He said there are concerns from traders on further downsize of the market.
"We are seeing escalated pressure due to
The focus is now to "book profits on blue chips that led the rally" in the beginning of the year.
Among the lonely gainer in
Of the 32 companies traded, one rose, 30 declined and one closed unchanged.
About 706.12 million shares worth Dh1.84 billion were traded.
Emaar was the active value leader while
Sidani said that it is hard to speculate when it [
"We believe that smart money and international investors, who missed the rally and have stayed on the sidelines, will now jump into the market to take advantage of the entry points," Sidani said.
But Shuraab said that corrections are healthy, but it should not be as steep as we are seeing now as this causes a negative reaction to be broader and let investors lose faith in the market.
"It is not a right a time to invest. Investors will pump money only when there is stability. With such negative performance of 10 per cent on a daily basis, it does not justify an appetite for investment. The high volatility and fluctuations, especially on the downside, discourages investors from participating due to risks of further downside," Shuraab said.
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