Abu Dhabi: Trade values on the Dubai Financial Market (DFM) showed steady signs of growth on Monday after a period of weak trade, as the DFM index went up 1.69 per cent to reach 4,819.86. The rise in the index marks the greatest one since the beginning of August.
The Abu Dhabi Securities Exchange (ADX) general index went up 1.10 per cent to reach 4,997.59 but volumes were still low.
In Dubai, the total trade value reached Dh678.8 million — an increase from the Dh290 million that were traded on Sunday.
Analyst Osama Al Ashry explained the growth in value saying, “There must have been an intervention to pump cash into the market to ensure DFM doesn’t plunge. I don’t see any significant news coming out to account for the increased liquidity, so it must be an intervention but we don’t know where it came from.”
Powerhouses in Dubai also showed signs of growth, with Arabtec rising 3.88 per cent to reach Dh4.28. The real estate developer topped the market in terms of value traded, with 37 per cent of the total trade value on DFM.
Meanwhile, Union Properties gained 3.4 per cent, Emaar went up 2.68 per cent, Gulf Finance House grew 1.94 per cent, and Dubai Islamic Bank inclined 1.17 per cent.
In Abu Dhabi, International Fish Farming Holding Co. (Asmak) topped the gainers’ list with a 9.38 per cent change. It was followed by Abu Dhabi National Company for Building Materials (Bildco) with 7.61 per cent, Sharjah Islamic Bank with 5.67 per cent, Sharjah Cement and Industrial Development Co. with 3.54 per cent, and Eshraq Properties with 3.01 per cent.
Al Ashry discussed market performance saying, “The rise in the index shows that the market wants to maintain this level, and might even cross its resistance level of 5,267. If it does, the DFM index could reach 5,750 by the end of the year.”
On the short term, however, he expected the DFM index to trade between 4,750 and 5,100.
“Trade could improve in September, because it is usually a season when investors tend to purchase stocks ... Regarding ADX, it appears to be high-risk due to the low trade values so I wouldn’t recommend trade at such low levels,” said Al Ashry, a member of Britain’s Society of Technical Analysts.
Of the 31 stocks traded on DFM, 20 went up, eight went down, and three remained unchanged. Of the 33 stocks traded on ADX, 18 advanced, seven declined, and eight remained flat.
