By: Mahmoud Gamal
Dubai – Mubasher: The Dubai Financial Market (DFM) ended the week on a positive note, backed by blue chips, particularly Arabtec Holding.
The DFMGI added 0.27% or 9.15 points and closed at 3,401.15 points.
The investment sector grew 2.7% over the week, backed by DFM Company’s 4.5% rise, while the transport sector increased 2.6% after Aramex gained 4.4%.
The real estate sector went up 0.68% backed by its blue-chip stock Arabtec which surged 12.1% on the back of new awards totalling AED 700 million.
On the flipside, the banks sector fell 1.2% after Dubai Islamic Bank (DIB) shed 2.1%.
Eyad Al-Bareeqy, general manager at Al-Ansari Financial Services (AFS) noted that UAE market performance this week was relatively jittery as oil prices fluctuated.
Several sessions this week witnessed strong buying, backed by positive news for companies like Arabtec, which was awarded several contracts that are likely to have a positive impact on its financial results, the analyst told Mubasher.
News that GFH was appointed market maker boosted the market and supported the stock, Al Bareeqy said.
On the other hand, there was some profit-taking on blue chips, which trimmed the DFM’s rise and resulted in fluctuations near the 3,400-point level.
Weekly turnover surged to AED 1.13 billion against AED 352.74 million last week, which saw only two active trading sessions due to the Eid Al Fitr holidays, while traded volume more than tripled to 760.23 million shares against 216.41 million.
Markets normally see fewer trades and lower liquidity during the summer months, the analyst added, noting that investors are awaiting several positive catalysts including second quarter financials.
Al Bareeqy expects companies’ results to be positive across all sectors, particularly insurance, real estate, investment, and services, adding that such encouraging results are likely to provide the necessary market support in the coming few weeks.
Translated by: Nada Adel Sobhi
