Dubai: The Dubai bourse’s main index ended almost flat on Thursday just a day after the US Federal Reserve concluded a meeting during which its board members voted unanimously to keep interest rates steady.
The Dubai Financial Market (DFM) index crawled up 0.02 per cent to reach 3,419.73, as the index continued to trade sideways and between narrow ranges.
“This is about the third consecutive month that the DFM index is trading in the 3,400-3,500 range, and I don’t think it’s a healthy sign. We are also seeing trade values consistently below Dh500 million and that’s not a good sign,” said technical analyst Osama Al Ashry.
Trade values on Thursday reached Dh443 million — nearly 30 per cent of which went to GFH Financial Group alone. GFH shares, which were the most actively traded in the market in terms of value, rose 4 per cent to Dh2.33 after having fallen 9 per cent a day earlier.
Al Ashry said, from a technical perspective, he has a strong buy recommendation for GFH shares.
“I think GFH is probably the best value in the market now especially after it announced profits that exceeded expectations. I still believe it has a new high to reach this year, and share prices may cross Dh4,” he said.
Most of the other actively traded stocks were also small caps such as Arabtec whose share prices rose 1.6 per cent as the company reported profitability in the first quarter of 2017 following nine consecutive quarters of losses.
Dividend
Meanwhile, Union Properties share prices jumped 4.87 per cent, and Amanat gained 4.46 per cent.
“We’re seeing just one or two stocks accounting for around 50 per cent of trade values on the Dubai market. Yes, it’s natural to see sideways movement in the index after dividend distribution, but we’re now approaching Ramadan and the summer season and the DFM index isn’t touching any highs, meaning it can fall further in the coming months,” Al Ashry said.
He pointed that the DFM index has a support level at 3,280.
The sideways movement in the index also comes amid political uncertainty on the international front, with the final round of the French elections set to take place on May 7.
In the capital, the Abu Dhabi Securities Exchange (ADX) general index rose 0.78 per cent to reach 4,617.16 supported by a rise in share prices of the National Bank of Abu Dhabi, which was the most actively traded stock in terms of value. NBAD share prices ended the day 1.8 per cent higher.