Dubai: Continued selling was seen on the Dubai bourse on Wednesday due to weakness in property company counters.
The Dubai Financial Market (DFM) general index closed 0.54 per cent lower at 2,685.13, extending the fall seen in the previous session.
“Non-stop selling failed to hold [the] index over the critical support zone at 2,700,” Shiv Prakash, a senior analyst with First Abu Dhabi Bank Securities (FABS), said.
“The index may target the next lower support at 2,668 [in the] near term. Investors are opting to sit on cash for the time being as most of the stocks are bearish.”
Damac Properties fell 3.48 per cent to close at Dh3.94. Union Properties, however, advanced 5 per cent to close at Dh0.539.
Dubai Islamic Bank eased 0.5 per cent to Dh5.27, with the losing trend seen in Dubai Investments, which dipped 0.72 per cent to Dh1.38 and Arabtec, which was down 1 per cent at Dh2.07.
Emaar Properties rose 0.22 per cent to close at Dh4.6, after selling in the company’s shares halted at the previous day’s low.
“Emaar Properties continued its free fall to lows on Tuesday, with investors exhibiting concerns regarding the property market and Emaar’s most recent deal with Abu Dhabi National Hotels to sell five of its prominent hospitality developments,” Issam Kassabieh, senior financial analyst at Menacorp, said.
Arabtec shares closed 0.96 per cent lower at Dh2.07.
“Arabtec may see an immediate support at Dh2.01, but a break below that level may target next at Dh1.80 in the short term,” Prakash said.
“Sentiment remains weak on the Dubai exchange — not as a result of weak fundamentals as most stocks are actually highly undervalued, but from the lack of communication, which in Emaar’s case, for instance, has not been there to support the stock. Investors haven’t received a clear reasoning as to how the sale [upon completion] will be a financial advantage to the firm,” he added.
The Dubai index has shed 17 per cent over the last 12 months.
The Abu Dhabi Securities Exchange (ADX) general index dropped 1.59 per cent to 4,881.04 yesterday while Saudi Arabia’s Tadawul All Share index rose 0.78 per cent to 7,632.50.