Dubai DFMGI falls 43 points with lower liquidity in April

Dubai -The Dubai Financial Market’s (DFM) general index lost 42.6 points, or 1.4%, to close at 3,065.96 points in April, amid strong selling trend.

Many companies announced that they will reduce their capital to address accumulated losses, which dragged down the DFM in the fourth month of 2018, capital market analyst Basel Abu Teima told Mubasher.

The UAE’s markets have seen low liquidity, which resulted partially in compromising investors’ confidence in the markets, Abu Teima added.

The DFM is expected to grow in May, as stock prices may reach attractive levels, the analyst said.

Over the month, the consumer staples sector dropped 22.6% after DXB Entertainments plunged 20.6% to AED 0.386.

The investment sector declined 8.32%, as Dubai Investments and DFM Company tumbled 9.09% and 5.8%, respectively.

The real estate sector also levelled down 2.3% after Drake and Scull International (DSI) dropped 29.5% to AED 1.22, while Union Properties sank 7.13% to AED 0.807 and Emaar Properties shed 0.2% to AED 4.05.

On the other hand, the banks sector added 2.11%, as Dubai Islamic Bank (DIB) and Emirates NBD levelled up 3.6% to AED 5.5 and 0.46% to AED 10.8, respectively.

The DFM’s trading volume shrank to 2.12 billion shares from 2.25 billion in March, while the market’s liquidity decreased to AED 3.6 billion versus AED 4.31 billion a month earlier.