The DFM Index posted its biggest daily loss since July 2014 on Wednesday, as Real Estate (-4.91%), Investment (-4.43%), and Services (-2.81%) sectors dived into the red. Out of the 29 companies traded only two gained and 26 declined, while one was unchanged. The benchmark index tumbled 3.36%, as the heavly traded stock Arabtec triggered a broad market selloff. Arabtec Holding (ARTC) ended down 9.18% at 4.45, almost touching the day limit, and was followed by a 6.78% decline in Gulf General Investments Co. (GGICO), and 5.92% drop in Gulf Navigation Holding (GULFNAV). Three-month charts for the six top losers are below.
DFM Index continues rebound
The DFM index gained 26.88 points today, ending at 5018.11, its third consecutive up day, indicating strong demand in the market over that time period. The market’s positive performance was boosted by the recent IPO announcements from Marka and Emaar Malls. Marka is the first retail sector IPO in the history of the Dubai Financial Market.
The DFM General Index breached the psychological 5000 level where it stalled two days ago. Since hitting a low of 4807.50 three days ago the index has recovered as much as 4.83%. Bulls dominated today’s market as 18 stocks advanced and 10 declined, while three remained unchanged.
Almost all the stocks in the Investment and Financial Services sector closed positive. Ekttitab Holding Co. was the leader in the sector, rising 3.68% to close at Dh0.705.
In the Real Estate sector, Arabtec Holding continued its winning streak by gaining 3.70% to close at Dh 4.77, as investors welcomed its ex-CEO’s decision to sell a stake to Aabar Investments. Union Properties was the next best performer in the sector with a 3.35% gain.
In Banking, stock performance was mixed. Commercial Bank of Dubai, top gainer in the Dubai market for the day climbed 4.84% to close at Dh6.50, upbeat by its recent debt upgrade by Fitch to A- with a stable outlook.
The top losers were led by Arab Insurance Group , which ended down 9.09% closing at Dh2.0, and almost touching its day limit of 10%, followed by Mashreq Bank, down by 4.58% to close at Dh125, and AlSalam Bank Sudan falling -1.66% to close at Dh2.97.