Dubai Financial Market (DFM) closed lower on Sunday from its previous close mainly because of lack of catalysts and profit taking. The market opened firm but trading lost steam as the trading advanced.
The benchmark index closed at 1,764.54, down 12.65 points or 0.71 per cent, with all sectoral indices pulling the market down. However, DFM is up 4.8 per cent month-to-date.
Bellwether stocks like Emaar, DP World, Arabtec, Aramex, Drake and Scull International, Air Arabia, among others dipped.
"Although DFM opened positive in the morning but subsequently, little bit of profit booking came in, which cost the market to dip marginally. Nevertheless, the turnover touched around Dh270 million, which is not bad," Krishnamurthy, CEO of the brokerage firm Dubai International Securities, said.
"The second factor that played into investors' minds was the news that the US economic recovery remains sluggish. The market was not able to take a clear direction and there were no catalysts as international markets are closed on Sunday. On Monday, when the global markets would open, the market will have a clear clarity on which direction to take," he added.
Stocks of the interior contracting company, Depa Limited, rose 1.47 per cent on Nasdaq Dubai after the firm announced that whilst year-end revenue and profit expectations will be lower than 2009 (excluding the impact of the Burj Khalifa claim), the improving backlog, which now stands at Dh2.4 billion, suggests the company will be well positioned for circa 20 per cent growth in 2011 and 2012, as the statement posted on the exchange's website.
Further, on Sunday, Global Investment House disclosed it interim unaudited condensed consolidated income statement for the nine months announcing a net loss of KD46.2 million, down from KD104.2 million in the same period last year.
Abu Dhabi Securities Exchange (ADX) remained flat with the index shedding 0.93 point to close at 2,816.11.