Abu Dhabi: The Dubai Financial Market (DFM) index fell over two per cent on Sunday after China’s major markets plunged on Friday with the Shanghai composite falling 7.4 per cent as share prices took a dive.
The DFM index slid 2.19 per cent to reach 4,055.97 amid relatively low trade values below Dh1 billion. The Abu Dhabi Securities Exchange (ADX), however, was a bit more stable, with the index falling 0.87 per cent to reach 4,719.25.
In Dubai, share prices for Amlak fell 4.62 per cent to reach Dh2.48 as the company’s stocks accounted for 21 per cent of the total Dh744.6 million traded in Dubai.
Meanwhile, Emaar share prices dropped 2.75 per cent, Arabtec went down 5.15 per cent, DFM shares shed 5.31 per cent, and Union Properties slid 3.17. Gulf Finance House went up 0.96 per cent.
Analyst Osama Al Ashri said he was not worried about the drop in Dubai, though, as the index has not yet reached any red flag support levels.
“I would say the market was trading within normal levels. I won’t be worried until the DFM index reaches 3,788, which is a risky support level, but as long as it’s near the 4,000 levels, there’s no risk,” he said.
Discussing Amlak’s shares, Al Ashri, a member of UK organisation, Society of Technical Analysts, said that they had been overbought, and hence, are starting to be sold.
“Amlak’s shares went up nearly 200 per cent in about four weeks, which is too much, so it’s normal to see corrections now. Share prices have a support level of Dh2.37, which, if broken, can bring Amlak to new lows.
I wouldn’t be surprised if the corrections do bring prices down to Dh2.37 because the shares are high-risk now. It’s the same story as Arabtec once was,” he said.
Abu Dhabi
As for ADX, Al Ashri said that ADX was also trading in low-risk areas as the support level is at 4,570. He expected the index to reach its 5,000 target in the next few weeks.
“Etisalat has a resistance level of Dh15.5, which I think it will soon reach, and being one of the heavyweights, it can push the index along to levels above 5,000,” the analyst said.
In Abu Dhabi, (Watania) topped the gainers’ list with a 12.94 per cent increase, followed by Sharjah Islamic Bank with 1.26 per cent, and the National Bank of Abu Dhabi (NBAD) with 0.95 per cent.
Of the 35 stocks traded on DFM, 32 went down, and three went up. Of the 28 stocks traded on the ADX, 18 declined, three advanced, and seven remained unchanged.
