News Column

DFM index falls 0.48% as real estate sector dips

August 17, 2014

Sarah Diaa Staff Reporter

Abu Dhabi: The Dubai Financial Market (DFM) index slid 0.48 per cent on Sunday to reach 4,789.95 with most powerhouses ending the day in the red, and with trade values still low at Dh202.6 million.

Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index fell 0.72 per cent to reach at 5,016.54.

The day's trade was marred with significantly low trade values in the real estate sector with companies such as Arabtec, Emaar, and Aldar Properties registering lower values than usual.

In Dubai, Arabtec ended the day with a total trade value of Dh41.4 million, and a drop in stock prices of 0.47 per cent to reach Dh4.22. Other real estate developers such as Emaar, and Union Properties also fell 0.5 per cent, and 0.47 per cent respectively.

Additionally, Gulf Finance House declined 0.57 per cent, Emirates NBD dropped 0.31 per cent, and DFM share prices dipped 1.49 per cent.

In Abu Dhabi, Ras Al Khaimah White Cement topped the gainers' list with a 4.58 per cent change, followed by Sudan Telecommunication Company (Sudatel) with 4.30 per cent, Abu Dhabi National Company for Building Materials (Bildco) with 3.92 per cent, and Green Crescent Insurance Company with three per cent.

Analyst Osama Al Ashry commented on market performance saying that the index is tied to the real estate sector, and thus, a plunge in the sector could drag down the index.

"The index now appears to be in a medium-risk zone. During August, trade volumes are usually low but if they remain at this level for a long period, that would be worrying. I expect better trade by the last quarter of this year," he said.

Al Ashry, a member of British organisation, Society of Technical Analysts, added that he expected the DFM index to approach 5,000 by the end of this year.

As for ADX, with the index now above 5,000, the analyst said, "Trade was disappointing [on Sunday] in Abu Dhabi, and I was surprised by the low trade values for Aldar. It's not comfortable to be trading at such low levels but at least, the index has crossed the 5,000 resistance level so I can't really be pessimistic."

Of the 30 stocks traded on DFM, 18 went down, six went up, and six remained unchanged. Of the 32 stocks traded on ADX, 17 declined, 10 advanced, and five remained flat.

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Source: Gulf News (United Arab Emirates)

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