Markets take a breather as earnings season begins

Dubai Financial Market (DFM) snapped its bullish movement on Tuesday after two straight sessions in a row, with the benchmark index dipping almost 9 points or 0.50 per cent to close at 1,744.63 on thin volume. Buying support seen on the banking and insurance sectors failed to lift the market up as other sectors faced selling pressures. Bellwether stocks such as Emaar Properties, Aramex, Drake and Scull International, Du, Shuaa Capital, Union Properties, Arabtec, among others were the leading decliners. Investors in the UAE bourses seem to be reviewing the Q3 earnings results that have started pouring in, with more companies following suit in the coming days. However, since Oct 3, the first trading day of the month until Oct 26, DFM has risen by 2.94 per cent. Selling pressure also seems to have accentuated by bearish Asia-Pacific market performance on Tuesday, as Shanghai Composite, Hang Seng, Nikkei 225, Straits Times and BSE 30 indices ended low. Many European markets were also trading low on Tuesday as per the latest data available. Abu Dhabi Securities Exchange (ADX) also ended down 6.79 points to close at 2,826.30.