Overbought Dubai market takes a dip
After closing on the upper Bollinger band for the third time yesterday, the Dubai Financial Market General Index (DFMGI) finished 0.65 per cent lower at 4,138.48 points on Monday, March 24. Arabtec, as the most liquid share, finished 1.06 per cent lower at AED5.61. Emaar fell back by 0.81 per cent to AED9.75. SHUAA Capital dived by 2.73 per cent to AED1.07. Developers Union Properties and Deyaar Development bucked the trend by gaining 0.97 per cent and 0.76 per cent, respectively. Due to the economic boom, more worrisome voices raised concern about Dubai’s alleged real estate and asset inflation. According to a report by The National, Abu Dhabi Islamic Bank CEO Tirad Al-Mahmoud the rise in property prices threatens the country’s competitiveness. “I think the growth in rental rates at 60 per cent (and 70 per cent in some pockets), though isolated, is not a healthy trend,” says Al-Mahmoud. Dubai-based economist Dr Nasser Saidi says Dubai’s inflation rose to 2.6 per cent – the highest since 2009.