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24 February 2024

Profit-booking hits UAE markets


By Mohamad Al Kady

Strong profit-booking movements in the final hour of trading caused Dubai Financial Market (DFM) to lose 25.73 points yesterday, or 1.67 per cent and close at 1516.53 points.

Despite the DFM index giving indications of strong bullishness after it witnessed an upswing during the previous session, the market faced strong selling pressures in the last session of the week, dragging most active stocks down.

Analysts had expected the bullish trend engulfing the market to push the index up to its next resistance level at 1660 points, but the market saw nervous movements by investors amid deep uncertainty about its direction.

However, profit-booking had been predicted due to the recent tendency among investors for quick profit taking and liquefying their investments in the market at the weekend, especially now since the market is closed for three consecutive days. The DFM opened with a gap yesterday, as most active stocks rallied at the beginning of the session. Then the market faced some fluctuation until the last hour of trading, when selling pressures surged sharply and hit all active stocks. Turnover increased during the session with 533.4 million shares changing hands at a total value of Dh740.6 million.

The DFM stock was the leading active stock as it booked around 48 per cent of the total trade volume, while Arabtec, Emaar and DIB stocks together garnered almost 30 per cent of the volume. The DFM stock saw strong fluctuations from the beginning of the session and ranged between Dh1.21 and Dh1.29.