Profit-booking resulted in a slight correction in the Dubai Financial Market today as the benchmark index retreated by 1.01% to 3,831.29.However, profit-booking was not the only reason given for the fall of the DFM. Analysts say the impending announcement from Emaar about its deal with Dubai Holding has created a bout of jitters in the market."There was huge profit-taking on the DFM. Today probably seemed like a good time to sell and I suppose investors will re-enter [the market] once it is weak," said Mohammed Bastaki, senior sales for Mac Sharaf Securities.
"Yesterday Emaar saw a pick up but today it fell back; people are confused.Emaar said it would give a full explanation about the Dubai Holding deal. At the time Emaar said the deal would be based on the company's one month average share price which nobody can gauge. At the moment, people are still waiting for details to come out and now a month has passed," added Bastaki.Trading volumes were quite subdued today as only 392 shares were traded on the stock exchange compared with yesterday's 486 million. The value of shares traded hit the AED1 billion mark by the end of the day's session.Bastaki said he was encouraged by the number of shares traded in the market."Normally it would take the market a month to recover from a correction but now we are seeing the market pick up after 10 days, so it's a good sign as people are coming back sooner. I believe we will hit the 4,000 mark by the end of the year," said Bastaki.Emirates Bank (EBI) was miles ahead of the other winners, rising 3.50% to AED8.86, followed by CBD which gained 0.42%, and Aman which increased its share price by 0.34%.The DFM saw shares in its company fall 7.14% to AED2.60. Following in its descent was GulfNav and Amlak which decreased by 6.03% and 4.14% respectively.Meanwhile, the Abu Dhabi Securities Market (ADSM) closed up 0.69% to 3,064.39; winners outdid losers by 6:4. Food Co Holding was the bourse's biggest gainer having risen 9.80% to AED3.25. Source
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