Dubai: Dubai stocks fell more than 1 per cent after a strong rebound in the previous session, even as analysts warned of a weak outlook going ahead. Abu Dhabi shares closed almost steady.

“International markets are very soft, Asian, and other markets closed lower, and even oil is in negative teritorry, so people are a bit cautious,” Muhammad Shabbir, head of equity funds & portfolios at Rasmala Investment Bank.

The Dubai Financial Market General index closed 1.44 per cent lower at 3,507.27, after gaining 6 per cent in the previous session.

The Abu Dhabi Securities Exchange General Index closed almost steady at 4,329.94, down 0.10 per cent. “Abu Dhabi Securities Exchange general index is still under until it breaches resistance level of 4,579 before end of this month, so I see the market under risk and may the index might record new low,” Osama Al Ashri, member of British organisation, Society of Technical Analysts.

The Dubai index may fall below the keenly-watched 3,000 marl, Al Ashri said. “Dubai index may see further correction and we may hit new low in coming weeks,” Al Ashri said, adding “if Dubai index breaches the support level of 3,250, we expect new low of 2,790 in the next few weeks.”

“I don’t recommend to buy and keep stocks at this juncture,” said Al Ashri.

In stock specific movements, Amlak Finance closed 2.96 per cent lower at Dh1.97, while Emaar Properties closed 1.74 per cent lower at Dh6.20.

Amlak is a risky stock and there won’t be any support before Dh1.57, said Al Ashri, adding Arabtec may hit a new low of Dh1.67.

Dubai Islamic Bank may trade in the range of Dh6.17-Dh7.20, said Al Ashri.

DIB closed 4.73 per cent lower at Dh1.61.

Abu Dhabi Commercial Bank (ADCB) may hit a new target of Dh7.89, said Al Ashri, adding Aldar Properties may hit support level of Dh1.79.

ADCB fell more than 4.5 per cent to end at Dh1.61, while Aldar Properties closed 5.26 per cent lower at Dh2.16. ADCB closed 0.53 per cent lower at Dh4.75.

Momentum driven:

“Market now-a-days are momentum driven, and it is negative. I don’t think there is a very strong push in the positive direction,” Shabbir said.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.06 per cent lower at 7,462.76.

Tadawul index may recover and hit a resistance level at 7,790, but there exist a possibility of a correction in the near-term, said Al Ashri.

Qatar Exchange index rose 0.48 per cent at 10,957.62.

Muscat Securities MSM 30 index ended 0.38 per cent higher at 5,782.04.