Dubai:
The Dubai index rose on Sunday, extending its year end rally to retest the keenly watched 4,000 level, led by Arabtec and Emaar Properties despite a declining crude oil prices.
The Dubai Financial Market General Index ended 2.58 per cent higher at 3,987.14, after hitting a high of 4,007.04, a level last seen on December 8.
“The index moving back to 4,000 levels is significant. I’m looking forward for closing price of 4,090, this will mean positive signal for markets,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts. “Next resistance is placed at 4,371 after 4,090 level.”
Analysts see indices locally gaining further.
“I don’t see any major reason for a sell-off in these markets again. It should continue to gain from hereon,” said Pradeep Unni, senior manager at Richcomm Global Services.
Marka jumps:
Shares of Marka jumped 12 per cent, after the announcement of acquisition of Retailcorp from Dubai World for more than Dh220 million.
Arabtec ended 2.51 per cent higher at Dh3.27 per share. Emaar Properties ended 3.92 per cent higher at Dh7.95.
“Arabtec is a high risk stock on the charts. It may go down again to support level Dh2.79 without uptrend breakout,” said Al Ashri, adding “Emaar Properties may witness consolidation between Dh7.30-Dh8 for two weeks.”
Drake and Scull ended at Dh1.020, up 0.99 per cent. “Drake and Scull may go down again to test support area of Dh0.91 to recover next month, so I recommend to book profit,” said Al Ashri.
On the broader index on Sunday, out of a total of 33 stocks, 29 gained, while shares of two companies fell.
Elsewhere in Abu Dhabi, the Abu Dhabi General Index ended 1.31 per cent higher at 4,595.95. “The next resistance is at 5,025 level,” said Al Ashri. Out of 29 stocks on the ADX, shares of 19 companies gained.
Positive signal:
Dubai Islamic Bank ended 3.74 per cent higher at Dh7.210.
“I see good positive signal for Dubai Islamic Bank as it has new resistance at Dh7.85, if it exceeds this resistance level, it will lead to another resistance at Dh10.30 within few weeks,” said Al Ashri.
Gulf Finance House ended at Dh0.333, down 0.60 per cent, while Aldar Properties ended at Dh2.93, higher by 2.8 per cent.
“Gulf Finance House is preparing to approach the resistance level of Dh0.42.
Aldar Properties may go to Dh3.37 resistance area within few weeks, so I still keep my recommendation to buy Aldar Properties,” said Al Ashri.
Eshraq shareholders may book profits at resistance area at around Dh1, and may test support area of Dh0.89-0.95. First Gulf Bank will consolidate further in this area between Dh15.5-17, Al Ashri added.