Abu Dhabi: Both the Dubai Financial Market (DFM) and the Abu Dhabi Securities Exchange (ADX) bounced back on Wednesday after days of decline that saw the DFM index plunge around 24 per cent since the beginning of the month.

On Wednesday, the DFM index rose 6.09 per cent to reach 4,253.04, while the ADX general index grew 1.89 per cent to end at 4,639.41.

Dubai powerhouses were mostly in the green, as Arabtec rose 5.13 per cent, while Deyaar Developments inclined 11.11 per cent. Meanwhile, Dubai Investment increased 9.32 per cent; Emaar went up 7.06 per cent; and Union Properties climbed 5.79 per cent.

The most notable change for the day was Arabtec, which rose 5.13 per cent to reach a value of Dh3.28 after losing almost $3.9 billion in market value in less than a month.

Analyst Osama Al Ashry explained the recent fall in Arabtec share prices saying, “The resignation of the CEO, followed by the dismissal of many managers made shareholders uncertain about the company. They noticed a lack of transparency in announcing such major decisions, and they didn’t appreciate that.”

Al Ashry, a member of British organisation, Society of Technical Analysts, said that a lot of the investors in Arabtec are foreigners who value transparency above many things.

“We noticed that an acting CEO was hired on the same day that Hasan Ismaik resigned, which indicates that Ismaik was dismissed, and didn’t resign. A couple of weeks before that, Ismaik increased his share in Arabtec to reach over 28 per cent, which was another surprise to investors and shareholders,” he added.

Al Ashry noted that Arabtec’s plunge has led to a drop in other Dubai powerhouses, because investors were leaning towards profit-taking activity, and selling of stocks to make up for their losses from Arabtec shares.

Despite the day’s incline, Al Ashry said markets are still in a risky place.

“I expect the markets to continue the rise on Thursday, but I think DFM, for example, may break a new low next month unless it manages to break the resistance of 4,580. If it does, this will give us hope that it can continue to rise,” the analyst said.

As for ADX, Al Ashry said its index needs to break a resistance of 4,795 next month to move past a worrisome phase.

“I don’t see the ADX index breaking this number, though, and I expect a new low where we could see the index at a minimum of 4,200,” he added.

Of the 32 stocks traded on DFM, 28 went up, three went down, and one remained unchanged. Of the 33 stocks traded on ADX, 21 advanced, nine declined, and three remained flat.