DUBAI (Reuters) - The declines in Dubai and Abu Dhabi securities markets have been hit by global market sentiment as a result of the rising trade conflict between the United States and China following US President Donald Trump's threats to impose new tariffs on Chinese goods, two financial analysts said on Monday.
The Dubai Financial Market fell 1.92% to close at 2715.6 points, while Abu Dhabi Securities Market fell 1.4% to close at 4968.1 points.
Dubai Financial Market Index (DFMGI) dropped 1.92%, or 53 points, to close at 2715.6 points. Trading volume on the Dubai Financial Market (DFM) reached 83.078 million shares, with a liquidity of AED 133.372 million, after 1807 transactions were traded.
Accordingly the Market Capitalization has decreased by 4.39 Billion AED from 362.406 Billion AED on Thursday to AED 358.015 Billion.
Emaar Properties was the most active stock with a turnover of AED 41.744 million, while GFH Financial Group was the most heavily traded stock.
Abu Dhabi Securities Exchange (ADX) plunged 1.42% to close at 4968.1 points, or 70.8 points. On the market capitalization, it fell by 6.78 billion dirhams from 514.1521 billion dirhams on Thursday to 507.371 billion in today's session.
A total of 76.225 Million Shares were traded with a total value of 196.782 Million AED after the trading of 1299 transactions.
Dana Gas was the top loser, dropping 2.83%, while no shares were up.
For his part, financial analyst, Ahmed Saif, said that the decline in domestic markets is considered natural and is part of the global effects of the escalating trade conflict between the two superpowers, the United States and China, where investors were interested in trade tensions between China and the United States and the exchange of the two parties to impose new tariffs on goods exchanged Between them.
Saif predicted that local markets will continue to monitor global indices at this stage, when the conflict between these two countries takes a new curve, as well as that investors in local markets prefer to invest in stocks at low values.
Financial analyst Essam Katsavia said the explanation for the major declines in global and domestic markets was that many had expected future negotiations that would bring the US and China closer, but what had happened was the opposite, as the crisis took a rising curve. A bad impression of what this crisis will be in the future.
Kassabia explained that the local markets were not safe from them, because all investors, including local investors, believed that the crisis is on the way to a solution and not escalation, pointing out that the declines in local markets are normal in line with global indicators, expecting that the local market indices will continue In tracking the US and Asian markets in the near term.