Dubai: Market experts are asking themselves whether Dubai Financial Market’s loss of 14 per cent of its value over the past five trading days is a partial correction or a measured correction.

The DFM index closed on Tuesday at 4,655.71, 199.79 points (4.12 per cent) down on the previous day’s close.

If it is a partial correction, then the worst is likely over. If not, the market will see further declines.

“Until now I consider it a correction from the last ascent since March — since then we have gone from 3,800 to 5,400 without a correction, 1,600 points,” said technical analyst Osama Al Ashri. “If the market is correcting for this period, 4,600 is the support.

“We will know if this is measured correction or partial correction at the end of the month; without the uptrend broken, we cannot decide, so I still consider this normal trading.

“A lot of shares are recording new lows. People are afraid. All the markets are working by margins. Any descending habit in the market will be down to margins, down to people being afraid, due to the market being up for a long period.

“But scientifically, we cannot decide between a measured correction or a partial correction.”

Dubai saw deals worth Dh2.6 billion throughout the day. The property sector accounted for 70 per cent of the value, and the banking sector another 16 per cent. The six most heavily traded shares all closed down.

Al Ashri, a member of Britain’s Society of Technical Analysts, said: “This was expected from yesterday. I still expect a new low tomorrow, but not more than strong support at 4,522, then it will go up again as a short-term correction to test resistance around 4,700 to 4,750.

“We recommend buying low tomorrow.”

Arabtec and Emaar bore the brunt of the day’s declines. Arabtec was the day’s biggest loser, shedding 8.64 per cent of its value to close at Dh6.24 following trades worth Dh786 million. Emaar lost 3.65 per cent of its price to close at Dh9.25 after Dh718 million worth of trades.

“I think Arabtec tomorrow will see a new low at support levels of around Dh6 — Dh5.93 to be exact — then up again to test a resistance level around Dh6.80,” Al Ashri said. “Arabtec still keep an uptrend. It hasn’t broken.”

Emaar’s current closing price was already testing support levels protecting its up trend, he said. “It’s not good for Emaar to break Dh9,07. If it’s broken we’ll see new low targets at Dh8.44 — it’s better for Emaar to go up without breaking trends on the short and medium-term charts.”

Dubai Islamic Bank has support protecting its uptrend at Dh6.41, he said. It closed on Tuesday at Dh6.71, 6.02 per cent down for the day. “I think tomorrow it will start a correction,” Al Ashri said. “I think next week will see Dh7.50.”

Union Properties lost 2.79 per cent, closing at Dh2.09. “I think it will try support levels below Dh2,” Al Ashri said. “Its first support is at Dh1.83.}

Dubai Investment Corporation, which closed 2.45 per cent down at Dh3.19, could test support around Dh3, but was likely to rise again to test resistance at Dh3.57, Al Ashri believed.

Abu Dhabi Securities Exchange also declined, with the ADX dropping 2.31 per cent to close at 4,756.88 after trading worth Dh810 million.

“Abu Dhabi isn’t going down strongly,” Al Ashri pointed out. “It’s gone down in the last five days from 5,050 to around 4,750, only 6 per cent.

“Most shares in Abu Dhabi are stable. They didn’t do a lot of jumps like the Dubai market. Both markets depend on the property sector, and there have been jumps in Dubai.

“I see a new low around 4,679, then I see the market going up again.”

Aldar, the ADX’s top share by trade value, lost 4.71 per cent to close at Dh3.82 following trades worth Dh200 million. Al Ashri said this was close to support levels at Dh3.65. “I see no problem to test this support, but Dh3.27 protects the uptrend. It’s still a positive outlook for Aldar as long as it keeps the uptrend and doesn’t touch its high-risk supports.”