Trading on Dubai Financial Market (DFM) remained sideways on Monday as subdued investors’ response and low volumes dragged the market down, though marginally.
The benchmark index slid by 8.12 points or 0.48 per cent to close at 1,686.52, with all sectors except banking and utilities pulling the market down.
Out of 27 stocks traded, 19 declined while just four advanced.
Analysts say the market is on a waiting mode and needs a positive trigger for clear direction, especially the upcoming Q3 earnings results by companies. Weak investor sentiments also seem to have been supported by the selloff in major European bourses on Monday.
“The market was a bit weak today reflecting a lack of additional catalyst to take the market to a higher level, and also reflecting weak performance by European markets. The market will be looking for direction through the Q3 numbers unless we see a major event taking place,” Chahir Hosni, Sales Manager (Mena equities), EFG Hermes, told Emirates24|7.
Volumes dropped close to 64 million on weak trading from Sunday’s 81 million, equaling to turnover of around Dh125 million from Sunday’s Dh171 million.
“Sideways trend continues in the market with supports seen near 1680 and resistance at 1720. Volumes were again lower and activity was seen only towards a few stocks. Markets are on a halt and await some positive trigger,” Shiv Prakash, Head Technical Analyst, CapitalTA, a trading advisory firm on Indian, UAE, forex and commodity market, said.
“Du after gaining until Dh2.69 met profit taking and closed lower by 1.87 per cent at Dh2.63. Medium term trend still remains bullish.
Emaar also traded sideways in the range of 5 fills on low volumes. A break below Dh3.72 may bring selling until Dh3.68 supports. Immediate resistance is seen at Dh3.78,” he added.
Abu Dhabi Securities Exchange (ADX) also declined marginally by 10.47 points to close at 2,664.23.