DFM Slumps for 2 Days

What's wrong with Dubai Financial Market? After years of winning the "green" index in the stock market, it landed a bad fall from two days. however, investors should not be alarmed of the decline because it was immediately backed up by Abu Dhabi's two biggest company, which make the red index turned into green.

The Dubai Financial Market fell 0.84 per cent to 5,436 points as Emaar, du, DFM, Emirates NBD and Dubai Islamic Bank all declined. There was better news on the Abu Dhabi Securities Market, which climbed 0.47 per cent to 4,760 points after etisalat and National bank of Abu Dhabi both surged more than one per cent.

“Further falls were not expected because other regional exchanges are doing quite well,” said Alaa el-Din Moustafa, EFG-Hermes chief dealer.

He said the ongoing spate of initial public offerings, both domestically and in the wider Gulf, were draining liquidity from the market. “These have left the market short of money,” Moustafa said.

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