Quick profit booking drags DFM down

13/10/2010 00:00 AST

After advancing for five trading sessions in a row, Dubai Financial Market (DFM) snapped its bullishness on Tuesday after giving in to selling pressure on account of quick profit booking.

Major stocks such as Emaar, DFM and Arabtec declined though their counters attracted remarkably high volume.

Emaar fell marginally 0.76 per cent to Dh3.94 in 664 trades involving 30.45 million shares.

Arabtec dropped by 1.75 per cent to Dh2.25 and DFM lost 1.08 per cent as to stock closed at Dh1.83, in 334 transactions.

Out of 27 stocks traded, only four managed to advance while 22 posted declines. The market however remains at five-and-a-half-month high.

The benchmark index tanked 12.97 points or 0.74 per cent to close at 1,742.63, with all sectors pulling the market down.

Market volume also edged lower to around 161 million, pulling the turnover down to around Dh276 million from Monday’s around Dh423 million.

Major gainers included Hits Telecom, Ekttitab, Gulf General Investments Company, Ajman Bank, among others.

“The rapid rise seen in last few trading sessions ended in profit taking today with markets giving a bearish close at 1742.63 down by 0.74 per cent. Short term trend still remains bullish as it remains above the support levels of 1720,” Shiv Prakash, Head Technical Analyst, CapitalTA, a trading advisory firm on Indian, UAE, forex and commodity market, said.

Selling pressure also seems to have been impacted by the fall seen in almost all major Asia-Pacific markets as well as European markets on Tuesday.

All major European bourses were trading in the red as per the latest data, while except for Shanghai Composite, all major Asian stock markets ended lower on Tuesday.

Abu Dhabi Securities Exchange (ADX) also shed 9.26 points to close at 2,712.42, with all sectors except telecom, industrial and energy, posting losses.

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