Gulf News

Prop­erty stock losses weigh on Dubai in­dex

IN­DEX IS DOWN 7.1% FROM NOVEM­BER 8 HIGH AS SELL­ING PRES­SURE GROWS

- BY SIDDESH SURESH MAYENKAR Se­nior Re­porter Americas Stock Markets · Europe-Middle East Stock Markets · Asia-Pacific Stock Markets · Finance · Stocks & Markets · Middle East News · Real Estate · Financial Markets · Business · Latin America Stock Markets · Dubai · United Arab Emirates · Saudi Arabia · MERVAL Index · Dubai Financial Market · Dubai Financial Market · Emaar Properties · First Abu Dhabi Bank · Abu Dhabi · Damac Properties · Abu Dhabi Commercial Bank

Sell­ing pres­sure in­creased on the Dubai Fi­nan­cial Mar­ket (DFM) gen­eral in­dex as heavy­weight prop­erty coun­ters such as Emaar Prop­er­ties and Da­mac ex­tended losses yes­ter­day.

The in­dex touched an in­tra-day low of 2,624.94 be­fore re­cov­er­ing slightly to close at 2,632.15, down 1.63 per cent from the pre­vi­ous close.

On a de­clin­ing trend, the in­dex is down an av­er­age 7.1 per cent from the Novem­ber 8 high of 2,833, and has formed con­tin­u­ous lows over the last week.

A crit­i­cal point for the DFM in­dex would be at 2,590, its low­est since Jan­uary 2016.

A breach be­low this level will re­sult in mar­gin pres­sure, weigh­ing the in­dex even lower to 2,330, Shiv Prakash, a se­nior an­a­lyst with First Abu Dhabi Bank Bank Se­cu­ri­ties, said in a note.

The real es­tate sec­tor has played a key role in this melt­down, with the UAE Cen­tral Bank not­ing in its quar­terly re­port that re­alty prices have been on the back foot — the re­sult of a softer job mar­ket that con­tin­ues to weigh on hous­ing de­mand.

Emaar Prop­er­ties hit an­other new low this year in in­tra-day trade, touch­ing Dh4.39 be­fore clos­ing at Dh4.44, 3 per cent lower than the pre­vi­ous ses­sion.

“Emaar Prop­er­ties is still un­der pres­sure, how­ever, as buy­ing vol­umes on the stock are fail­ing to im­press. In­vestors hope to find out whether the real es­tate gi­ant will be pass­ing on gains from the sale of its ho­tels as a spe­cial div­i­dend or an­nual [div­i­dend] for that mat­ter,” Is­sam Kass­a­bieh, a se­nior fi­nan­cial an­a­lyst at Me­na­corp, said.

Da­mac Prop­er­ties closed 1.78 per cent lower at Dh4.30 while Union Prop­er­ties dropped 6 per cent to end at Dh0.515.

Mean­while, in the UAE cap­i­tal, the Abu Dhabi Se­cu­ri­ties Ex­change (ADX) gen­eral in­dex shed 1.38 per cent on the pre­vi­ous day’s close to end at 4,830.38.

First Abu Dhabi Bank (FAB) was 2.27 per cent lower at Dh13.78 while Abu Dhabi Com­mer­cial Bank (ADCB) fell 1.72 per cent to Dh8.01.

Else­where in the Gulf re­gion, Saudi Ara­bia’s Tadawul All Share In­dex fell 0.26 per cent to close yes­ter­day’s ses­sion at 7,882.61.

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