Abu Dhabi: Both the Dubai Financial Market (DFM) index, and the Abu Dhabi Securities Exchange (ADX) index dropped on Tuesday as volumes more than doubled in both markets.

The DFM index fell 1.47 per cent to reach 4,557.69 with trade value at Dh2.2 billion — up from around Dh650 million on Monday, while the ADX general index shed 2.08 per cent to reach 4,861.74.

In Dubai, most blue chips ended the day in the red with the exception of Emaar, whose share prices remained flat at Dh11.35. The real estate developer that recently announced a total cash dividend of Dh9 billion accounted for 66.7 per cent of the total market value.

Meanwhile, Arabtec shed 2.29 per cent, Dubai Islamic Bank declined 2.06 per cent, Union Properties, and Deyaar Developments each fell 1.92 per cent, and Dubai Ports World slid 1.87 per cent.

Analyst Osama Al Ashry said that the market was still trading within its expected boundaries, despite the drop.

“I would consider the market in a risky zone if the DFM index drops to 4,375 because this is a support level that, if crossed, can see the index trading below 4,000. In Abu Dhabi, the support level is 4,750. As long as we’re away from those levels, I wouldn’t be too worried,” he said.

Al Ashry, a member of UK organisation, Society of Technical Analysts, however, considered the trade value in Dubai abnormally high.

“With Emaar’s announcement about its dividends, a lot of investors are selling their shares in other companies, and buying Emaar’s shares alone. And I do think that Emaar shares have a lot of potential to reach prices like Dh13.3,” the analyst said.

He expected the market to bounce back on Wednesday, which is when the effect of news about MSCI increasing the weighting of select UAE stocks kicks in.

In Abu Dhabi, Green Crescent Insurance Company topped the gainers’ list with a 6.17 per cent increase, followed by Emirates Driving Company with a 5.26 per cent gain, Union National Bank with 1.07 per cent, and Abu Dhabi National Hotels with 1.01 per cent.

Of the 33 stocks traded on DFM, 23 went down, four went up, and six remained unchanged. Of the 30 stocks traded on ADX, 17 declined, five advanced, and eight remained flat.