Volatility continues on UAE bourses
Dubai's stock index DFM was 5.03 per cent lower at Tuesday's closing after a massive sell-off of stocks
Dubai: Dubai’s stock index DFM was 5.03 per cent lower at Tuesday’s closing after a massive sell-off of stocks.
Badly hurt were construction and property stocks like Emaar, which fell 7.3 per cent, and Arabtec, which lost 6.2 per cent.
The Dubai Financial Market stock itself retreated by 9.4 per cent. Construction services firm Drake & Scull fell 4.7 per cent despite reporting a profit of Dh71 million.
The sell-off followed a recovery on Monday that, however, came after a similar massive drop on Sunday, indicating uncertainty among investors amid the current earnings season and amid contradictory signals from the world stock, commodities and currency markets.
“The correlation with international markets is affecting our performance and volatility will persist,” says Chamel Sahmy, trader at Beltone Financial.
For the Dubai Index, it was the fifth decline in six sessions. Compared with Dubai, Abu Dhabi’s slump was milder with a minus of one per cent. Takaful fell ten per cent and was the biggest loser today, followed by Asmak and Union Cement.
On the upside, mostly banks gained. Abu Dhabi Commercial Bank led the race and was up six per cent.
