Abu Dhabi: The DFM General Index dropped 1.61 per cent on Tuesday to end at 4,686.29, while the ADX Securities Index went down 0.95 per cent to end at 5,085.63.
Osama Al Ashri, a member of the British organisation, Society of Technical Analysts, said both markets went down as correction for the recent increases in stock market.
“A few years ago the DFM Index used to end at around 1,400 to 1,500, while the ADX Index ended at around 3,500. Now, the markets are closing at over 4,000, so naturally, there would be some drop sometimes to correct and balance out the market,” Al Ashri said.
He described the sentiment in Dubai as one of caution, whereas Abu Dhabi witnessed more stability. “Investors in Dubai know that the market has experienced really steep increases in a short period of time, so they’re cautious about their stocks, and a lot of people are selling their shares. In Abu Dhabi, the index is not moving as steeply, so the market is more stable,” Al Ashri added.
He noted that real estate companies are currently the most active stocks because of the Expo 2020, increased prices of properties, and the low risk nature of the sector.
Discussing projections for the Dubai stock market, Al Ashri said he expected it to drop further to reach around 4,510 to 4,480 over the next few days.
In Dubai, Union Properties showed the most change in value with a 2.11 per cent decrease. Meanwhile, Dubai Financial Market dropped 1.68 per cent, Arabtec decreased 1.01 per cent, and Tabreed increased 0.78 per cent.
Abu Dhabi’s Waha Capital dropped 4.40 per cent in volume, Aldar Properties went down 1.91 per cent, but Dana Gas rose 4.55 per cent.
Of the 30 stocks traded on DFM, 21 declined, six advanced, and three remained unchanged. On the ADX, of the 40 traded stocks, 26 went down, eight advanced, and six remained flat.
