Dubai: Buying on Dubai Islamic Bank helped the Dubai index to maintain positive momentum until mid-session, wiping off intra-day gains.

DIB recovered from a previous low of Dh5.50, and touched an intra-day high of Dh5.62. The Dubai Financial Market General Index touched an intra-day high of 3,588.17, before closing flat at 3,554.69.

“Markets from here on would be mixed bag between investors who want to book profit and exit, especially institutions who would want to realise profits and investors who want to allocate more money to take benefit from dividends,” said Tariq Qaqish, head of asset management at Al Mal Capital.

But the silver lining was that the Dubai index was able to hold the key resistance level.

“Dubai index is holding over the 3,500/3,550 neckline support levels, expected to trade sideways in the coming weeks with resistance existing at 3,658,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.

Arabtec witnessed selling pressure. It closed 2 per cent lower at Dh1.34. Other stocks also witnessed mixed trade. Marka witnessed buying after recent activity in the stock. Marka share price went up by more than 5 per cent.

“Shuaa Capital is holding over the critical neckline support level at Dh1.40, turning up gradually towards the Dh1.68 levels. Traders may look to buy using smaller stop placed under the immediate support level at Dh1.47,” Prakash said. Shuaa Capital closed 3 per cent higher at Dh1.58. Gulf Navigation closed flat at Dh1.60.

“Gulf Navigation is poised for a bullish breakout and target of Dh1.70/1.80 in the near term. Traders may look to buy using Dh1.50 as the stop loss,” said Prakash.

Out of a total of 36 stocks traded on the exchange, shares of 14 companies fell, while other 15 rose. The rest remained steady.

The Abu Dhabi Securities Exchange closed 0.75 per cent higher at 4,496.53.

Small stocks

Buying has stabilised in select small stocks like Gulf Finance House, Shuaa Capital, Tabreed, Eshraq Properties among others.

“Traders may look to book partial gains on those stocks (which rallied recently) on the DFM which have rallied in the recent past and shift to those giving fresh bullish breakouts,” said Prakash.

Some stocks like GFH, Shuaa Capital had witnessed more than 200 per cent increase in stock price, but now those shares have stabilised, bringing down volumes on the Dubai bourse by about 75 per cent.

“Most of the volumes came in from speculative stocks, so those shares are cooling down. We would expect to see some consolidation in the markets. The new catalyst would be year-end results, and dividends,” Qaqish said.

Qaqish expects investors to move from fixed income and real-estate to better yielding equities.