Dubai: Dubai index witnessed a sideways tone on Monday, amid low volumes, as traders awaited the second quarter results from blue chips.
The Dubai Financial Market General Index gained in last few minutes of trade, and closed 1.08 per cent higher at 3,555.35. Traded volumes remained almost at Sunday’s level, with Dh300 million worth of traded shares.
“Market has been on the upside since 10 days due to recovery in global sentiment based on the signs that the fiscal flexility would be available to support growth. But now some new catalysts have to be found and results can provide the best leads,” said Mohammad Shabbir, head of equity funds & portfolios at Rasmala.
Emaar Properties gained in late trade and was the most active stock in terms value, ending 2 per cent higher at Dh7.00, while Arabtec gained 1.34 per cent to be at Dh1.51. The rest of the top traded stocks remained steady. Dubai Islamic Bank closed 0.18 per cent higher at Dh5.44, while Dubai Parks and Resorts stayed close to its peak, ending 0.60 per cent higher at Dh1.69. About 23 of the total 35 stocks gained in trade. The Abu Dhabi Securities Exchange General Index closed more than 1 per cent higher at 4,614.16. Dana Gas closed more than 1 per cent lower at Dh0.57, the rest of the stocks remained steady.
Elsewhere in the Gulf, Qatar exchange index closed 0.36 per cent higher at 10,523, while Muscat Securities MSM 30 index closed 0.10 per cent lower at 5,812.16. Saudi Arabia’s Tadawul index was 0.10 per cent lower at 5,812.16.
Going ahead, investors would be looking for clarity from companies for the next quarters even as banks witnessed mixed results. Emirates NBD stood out in terms of performance with a 16 per cent rise in net profit.
“The cost of risk is going up for most of the banks, so margins would remain pressured in this scenario, reflecting on the share price,” Shabbir said.
Cost of risk is the provision for bad debts that banks take as a percentage of the loan book.
