Abu Dhabi:
The Dubai Financial Market (DFM) index ended the day’s trade on Thursday with a minor drop after plunging nearly five per cent in the first few minutes of the day alone, as Saudi Arabia launched air strikes against Yemen.
The DFM index fell 0.8 per cent to reach 3,407.25, while the Abu Dhabi Securities Exchange (ADX) general index crawled up 0.03 per cent to reach 4,373.13.
Though the day was marred by a strong fall in share prices of blue chips as well as of the index, volumes were high, reaching Dh655.7 million — a figure that the market hasn’t seen in several sessions that have been dominated by weak volumes below Dh500 million.
Looking at the index, the day started with a dip from nearly 3,430 to around 3,240 in the first few minutes of trade. Share prices of Arabtec were down 7.4 per cent at 10.30am, while Emaar was 5.59 per cent lower, and Damac Properties was down 6.9 per cent.
However, things took a turn upwards shortly afterwards as Emaar, which topped the market in terms of trade value, ended the day with just a 0.16 per cent fall. Arabtec ended the day with a 3.48 per cent drop, Damac Properties with a 3.23 per cent slide, and Dubai Investments Co with a 0.44 per cent dip.
Dubai Islamic Bank and Emaar Malls ended with a rise, though, of 0.85 per cent, and 2.53 per cent respectively.
Analyst Osama Al Ashry attributed the initial plunge in the market to regional news that Saudi Arabia and its Gulf allies including the UAE launched air strikes against rebels in Yemen.
“A lot of people were saying there was a war, which isn’t the case, but when investors hear this word, they panic and they sell their shares. The UAE is among the countries participating in attacks against Yemen, so it’s natural that a lot of people are panicking and selling their shares, but I don’t think this will affect the market next week especially as oil prices are moving up now,” he said.
Al Ashry, a member of British organisation, Society of Technical Analysts, said the market was still risky on the medium term, though it was expected to grow on the short term.
“The DFM index needs to break the 3,590 level to pass the risky phase, and I think we should see the index at over 3,500 next week. Oil prices should reflect positively on the market,” he said.
In Abu Dhabi, Invest Bank topped the gainers’ list with a 13.12 per cent increase, followed by First Gulf Bank with 1.76 per cent, Waha Capital with 1.42 per cent, and Agthia with 0.7 per cent.
Of the 33 companies traded on DFM, 27 went down, five went up, and one remained unchanged. Of the 28 companies traded on ADX, 18 declined, four advanced, and six remained flat.
