The benchmark stock index of Dubai slid to the lowest level within the last couple of months as speculations rose that the gains for this quarter were kind of overdone. The benchmark gauge, DFM General Index declined by 0.9% and is currently at 1829.24, marking the lowest closing value since 28th January. DFM experienced a total gain of 13% during the 1st quarter of the current year.
Among the companies, the developer of the tallest skyscraper in the world, Emaar Properties PJSC, experienced a decline of 1.7%. Thereby its quarterly surge has been trimmed to 37% now. On the other hand, the renowned company specializing on gas and oil, Gulf Navigation Holding experienced the biggest tumble since March, 2012, as its loss widened. Drake & Scull International has experienced its biggest loss since 5th March as the board of the supplier of the engineering services to the construction industry recommended not paying any sort of dividend. On today, it was the most traded stock among the companies listed in the DFM General Index. In the stock exchange, around 28 million shares were traded on today, double to that of the 3-month daily average.
Due to today’s decline, DFM General Index’s gains have now been trimmed to 13%. The DFM General Index has been the 3rd best performer among the 7 Persian Gulf benchmark indexes. Out of the 31 companies listed, 10 were unchanged, whereas 4 and 17, experienced gains and declines respectively.
According to the Partner of Al Fajer Securities, Nabil Farhat, Dubai market is undergoing a correction. Nabil added that shipping industry will continue to suffer in 2013, as stated earlier by Gulf Navigation Holding (The company declined making such statement at a later time). In 2012, the company’s total loss was of 147.8 million Dirhams. Incidentally, in 2011, the loss was of 72.7 million Dirhams. As far as the forecast of EFG-Hermes Holding SAE is concerned, they predict the company to lose 23 million Dirhams in 2013. The shares of Gulf Navigation Holding declined by 8.2% and each share costs 22.4 fils now.
With the heaviest weighting on the gauge, Emaar has declined to 5.12 Dirhams. On the other hand, each share of Drake & Skull costs 73 fils now, after tumbling by 1.9%. The benchmark gauge of Saudi Arabia, Tadawul All Share Index slid by 0.5%. Oman’s gauge went down by 1%.