DFM, ADX tumble on gloomy economic outlook

Dubai Financial Market (DFM) fell for the third session in a row on Thursday as fears of a dismal global economic recovery kept investors at bay. The benchmark index shed 10.49 points or 0.71 per cent to close at 1,472.09 at the end of the trading on the last day of the week. The market traded on a thin volume all through the session and all sectors except telecom and utilities, lost their market value with the transportation sector falling the most by 1.57 per cent. Trading volumes stood at around 47 million, equal to shares worth Dh60 million. The market breadth was negative with 7 advances against 16 declines. Gainers included Deyaar Development, du, Global Investment House, Hits Telecom, Shuaa Capital, Tabreed, and Union Properties. The US Federal Reserve on Tuesday had downgraded its assessment of the US economic outlook, triggering pessimism around the global stock markets, including in the US where the Dow Jones Industrial Average dropped more than 200 points on Wednesday as stock investors preferred to take their money off the table. Asian markets also ended in red on Thursday, and trading on almost all European indices was down. Abu Dhabi Securities Exchange (ADX) also fell on the back of selling pressure. The general index closed at 2,471.49, down 24.17 points or 0.97 per cent from previous level. All sectors ended in red on the back of low volumes that fell by almost half from yesterday’s level of around 56 million stood to around 30 million on Thursday. Value of shares traded also fell by half to around Dh55 million from yesterday’s Dh105 million. Only 4 stocks posted gains, compared to 17 declines.