Dubai index falls more as rotation among stocks expected

Dubai

Dubai index edged lower on Sunday, extending losses for another session, as traders resorted to profit-taking.

The Dubai Financial Market General Index closed 0.36 per cent lower at 3,559.70, after losing for three out of four sessions. “We are seeing some profit-taking today in specific names,” said Tariq Qaqish, head of asset management at Al Mal Capital said.

In stock specific action, Gulf Navigation rallied to form a high of Dh1.14, the highest level since a month, before closing 2.75 per cent higher at Dh1.12. Emaar Properties closed less than a per cent lower at Dh7.27. Drake and Scull ended 2.72 per cent lower at Dh0.500.

Emaar Properties closed 0.41 per cent lower at Dh7.27. Out of a total of 34 stocks traded on the exchange, shares of 17 firms fell, while other 11 firms rose.

“We are seeing a shift in investor interest in stocks, which underperformed in the recent rally,” Qaqish said.

“The positive run on oil prices and also global positive outlook should bode well for the UAE and the region,” Qaqish said. Over the past few weeks, stocks like Dubai Islamic Bank, Arabtec, Dubai Investments among others have been witnessing buying. The index, which these shares are a part of, touched the highest level on intra-day basis of 3,623.70 hit on August 16. The index has recovered 39 per cent from the lowest level of 2,590.72 struck on January 21.

“We may see rotation in companies. Fundamentally, earnings didn’t interest investors so much,” Qaqish said, adding “investors need to be selective and also watch the international markets.”

The Abu Dhabi Securities General index, which closed 0.02 per cent higher at 4,519.29, may continue to consolidate in recent ranges. The index may trade in the range of 4,500-4,580 for another few weeks, said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.

RAK Properties witnessed some buying activity with higher volumes. The stock ended at Dh0.61, up 1.76 per cent. Volumes increased to 28.66 million shares, the highest level since July 20.

“RAK Properties may witness a bullish breakout to target Dh0.66 in the near term,” said Prakash. Eshraq Properties closed more than a per cent lower at Dh0.75. The stock may hit a high of Dh0.81, said Prakash. Dana Gas closed 1.75 per cent lower at Dh0.56. Out of a total of 25 stocks traded on the exchange, shares of 6 firms rose, while other 8 fell.

In the wider Gulf market, Saudi Arabia’s Tadawul index was 0.02 per cent lower at 6,225.61. The trend is down in Tadawul index, and immediate support is seen at 6,065, said Prakash, adding if the index breaches resistance of 6,254, we may rally back to previous high of 6,390 in the short-term.

Qatar exchange index closed 0.20 per cent lower at 11,297.50.

The rally on Qatar index is losing steam as the volumes are falling with the rise in price, said Prakash. The index may see support at 11,150 in the near term, he added.

Muscat Securities MSM 30 index closed 0.08 per cent higher at 5,899.14, while Kuwait stock exchange index closed 0.08 per cent lowe at 5,467.77. Bahrain bourse all share index closed 0.69 per cent higher at 1,156.95. In the wider Middle East, the Egyptian EGX 30 index closed 0.35 per cent higher at 8,346.57.