UAE stocks seen in range as investors eye key results

Dubai: UAE stocks may witness range bound trading next week as investors focus on global events along with Emaar Properties results.

The Dubai Financial Market General Index ended almost flat at 3,903.38

on Thursday, while the Abu Dhabi Securities Exchange General index also closed steady at 4,626.92.

“Emaar Properties results would be good but it would be difficult for Emaar to completely change the sentiment of the market at the moment even if it came out with strong results,” Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group told Gulf News.

Emaar Porperties, which was the second most active stock in trade, ended at Dh7.25, up 0.55 per cent. Emaar Properties may witness resistance level of around Dh8, according to a technical analyst Osama Al Ashri.

“Investors are waiting on the sidelines for where it might be heading on global events. They are focusing more on the global picture rather than local results, so we may see rally for a little bit but may go in range bound trading. It’s not going to be a strong move either way,” said Khokhar.

Meanwhile, a Greek official reiterated on Thursday that the country was confident of reaching a deal with European partners but will not extend the current bailout programme, after late-night talks in Brussels ended without agreement. Eurozone finance ministers are due to meet again on Monday to find a way forward in the crisis.

“Going into the dividend season, strong dividend paying companies should be in favour, so when we look at large UAE and Qatari banks for example, they would be looked at by investors,” said Khokhar.

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Al Ashri, who is also a member of British organisation, Society of Technical Analysts said volumes in UAE is closely linked to prices of crude oil.

“I see low volumes next week as well. Dubai index may move higher and consolidate above 4,000 levels. Abu Dhabi index would go resistance level 4,715.” said Al Ashri.

Aldar Properties, which ended at Dh2.59 on Thursday, may touch resistance level of Dh3.07 within few weeks.

Saudi’s Tadawul ended more than 1 per cent higher at 9,257.49 on Thursday.

“I see TASI above 10,000 by within a few weeks. Samba Financial Group may touch resistance level of 50 Saudi Riyals during this month, but may go down first to 43.80,” said Al Ashri. Samba Financial Group ended the trade at 46.66 Saudi Riyals, up nearly 1 per cent.

Saudi Basic Industries Corp may go down to support level of around 82.75 Saudi Riyals before going up, said Al Ashri.