The Dubai Financial Market General Index (DFMGI), the main benchmark for the region’s leading financial exchange, fell by 0.15% to close at 3,937 points on Tuesday, October 17, 20231. The index has been on a downward trend since reaching an all-time high of 10,671 points in November 20222, losing more than 6% of its value since the beginning of the year3.
The decline in the Dubai market index reflects the global uncertainty and volatility that have affected the financial markets in recent months. The ongoing conflict between Israel and Hamas, the rising oil prices, the inflationary pressures, and the coronavirus pandemic are some of the factors that have dampened investor sentiment and increased risk aversion.
The DFMGI is composed of 67 companies listed on the Dubai Financial Market (DFM), representing various sectors such as banking, real estate, telecommunications, and transportation. The index is calculated by S&P Dow Jones Indices based on a methodology that considers the market capitalization and free float of each constituent4.
Among the top performers in the DFMGI on Tuesday were Dubai Investments PJSC, a diversified investment company that rose by 0.9% to 2.25 AED per share1, and Emirates NBD Bank PJSC, the largest banking group in the UAE that gained 0.7% to 11.95 AED per share1. On the other hand, some of the worst performers were Emaar Properties PJSC, the largest real estate developer in Dubai that dropped by 1.8% to 3.85 AED per share1, and Emirates Integrated Telecommunications Company PJSC, a leading telecom operator that fell by 1.6% to 6.15 AED per share1.
The DFMGI is one of the three main stock indices in the United Arab Emirates (UAE), along with the Abu Dhabi Securities Exchange General Index (ADXGI) and the NASDAQ Dubai Index (NDI). The ADXGI also declined by 0.6% to close at 7,321 points on Tuesday3, while the NDI rose by 0.4% to end at 2,722 points5. The UAE stock indices are influenced by both domestic and regional factors, as well as by the performance of other emerging and developed markets around the world.