Dubai: The Dubai index fell by nearly a per cent on Thursday led by losses in Damac and Amlak Finance, with analysts expecting a recovery going forward.

The Dubai Financial Market General Index closed 0.99 per cent lower at 4,123.34.

“The Dubai index may hit a new high at 4,384 by next few weeks,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts.

Damac Properties closed 1.36 per cent lower at Dh3.63, after gaining as much as 15 per cent in the previous session post strong results.

Amlak Fianance closed 4.15 per cent lower at Dh2.31. “Amlak Finance may consolidate in between Dh2.17-2.44 for the next few weeks. We expect new high if it breaks resistance level of Dh2.51,” said Al Ashri.

Gulf Finance House ended 0.69 per cent lower at Dh0.722. Gulf Finance House is still oversold, and we expect a new high of Dh0.79 in the next few months, Al Ashri said.

Telecommunication majors such as etisalat, du shares fell after the operators signed a deal to open up fixed line home services like fixed telephone line and internet, which has ended etisalat’s monopoly in home services.

Etisalat ended more than 3 per cent lower at Dh13.70, while shares of du ended 0.19 per cent lower at Dh5.39.

Abu Dhabi index

The uptrend on Abu Dhabi index is still intact and may hit a resistance at 5,050 later this month, and may even hit 5,289 in the next few months after the index has shown ascending triangle on a medium term chart, said Al Ashri. The Abu Dhabi Securities Exchange General index closed 0.15 per cent lower at 4,835.47. The index struck a record high of 6,229 in April 2005.

First Gulf Bank closed 0.05 per cent higher at Dh15.70, while Abu Dhabi Commercial Bank closed marginally higher at Dh8.45.

“First Gulf Bank faced good resistance at Dh15.8, and if it breaks out this resistance, the next level to watch out for would be Dh17.1,” Al Ashri.

“Abu Dhabi Commercial Bank may hit a new high of Dh10 by next few weeks, so I advise investors to buy fresh positions,” Al Ashri said.

Important support

Elsewhere in Saudi Arabia, the Tadawul index closed 1.55 per cent lower at 8,654.64.

“Tadawul index breached an important support at 8,469, and may hit a low of 8,000 if it breaches the earlier support level,” Al Ashri said.

Saudi Basic Industries Corp ended 2.26 per cent lower at 90.75 Saudi Riyals, while Etihad Etisalat Co closed 3.07 per cent lower at 29 Saudi riyals.

Qatar Exchange Index closed 0.56 per cent lower at 11,770.25, while Muscat Securities MSM 30 index closed steady at 6,430.29.