A sharp fall in real estate stocks prices pulled down the UAE bourses further as the Dubai Financial Market index slipped below the 2,000-point barrier by losing 3.5 per cent on Sunday.
Domestic market moving news remained thin on the ground and investors are still looking for direction from regional and global markets.
“Sitting lower on the bids and letting the stock come to you is still the best strategy for tomorrow,” said Matthew Wakeman, managing director of cash-and-equity-linked trading at ?EFG-Hermes.
Trading value remained thin at both the bourses as DFM traded shares worth Dh513.9 million compared to the 50-day average of Dh966.4 million.
At Abu Dhabi, shares worth Dh277.7 million traded compared with the 50-day average of Dh4230.5 million.
“I would expect the DFM benchmark index to find good support at 1,900 points and rebound provided oil stays at current levels. Likewise 2,700 should hold on the ADX,” Wakeman said.
The DFM benchmark index closed down 3.51 per cent at 1,943.36 points, while Abu Dhabi Securities Market, or ADX, benchmark retreated 1.68 per cent to 2,751.28 points.
Property Developer Deyaar was down by 6.90 per cent after the resignation of its chairman Nasser Al Shaikh. Other property stocks also plunged as Emaar lost 4.44 per cent to Dh3.44 and Arabtec retreating 3.45 per cent to Dh2.80. Drake and Scull International was down 3.09 per cent to Dh0.94. ?
At the ADX, First Gulf Bank lost 2.52 per cent to Dh13.55 and National Bank of Abu Dhabi fell 0.50 per cent. RAK Bank jumped by 9.90 per cent to Dh4.44. Etisalat retreated 0.48 per cent to Dh10.40.
“Although severe if you’re holding stock from last weeks highs, this move is healthy and in line with what we would expect from markets dominated by short term investors,” Wakemand said.
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