Dubai index recoups early losses

Dubai

The Dubai index recouped early losses on Wednesday because of a recovery in shares of Dubai Islamic Bank, even as traders eyed results from Emaar Properties for a lift-up.

The Dubai Financial General Index closed 0.14 per cent lower at 3,642.92, recovering from a low of 3,623.08.

“The DFM index has been capped so far by the 3,700 strong resistance I mentioned before and could extend losses from here, 3,600 would be next support,” Hisham Khairy, head of institutional trading.

Dubai Islamic Bank closed 0.16 per cent higher at Dh6.11. Arabtec closed 2.26 per cent lower at Dh3.46 despite swinging into net profit in the second quarter.

“Arabtec with all the recent changes from rights issue to shares cancellation have finally reached a positive number but that doesn’t change the fact that the company is still suffering, if any rally takes place on back of numbers would be shorting the futures contract,” Khairy said.

Shuaa Capital thinks that Arabtec at current valuations is expensive.

“We await further evidence of build-up/sustainability of the backlog, and continual improvement in gross margins before having a more positive outlook on the stock price,” said Ankit Gupta, vice president with Shuaa Capital.

Dubai Entertainments closed at Dh0.809, down 2.53 per cent after reporting a loss.

Gulf Finance House ended 5 per cent lower at Dh1.99. Union Properties also fell 1 per cent at Dh0.870.

Emaar Properties closed 0.8 per cent higher at Dh8.35.

The Abu Dhabi Securities Exchange general index closed 0.69 per cent lower at 4,556.39. National Bank of Abu Dhabi closed 1.38 per cent lower at Dh10.70. Union National Bank closed 2.2 per cent lower at Dh4.45. Etisalat closed 0.55 per cent lower at Dh18.20. Eshraq Properties closed 2.17 per cent lower at Dh0.90.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.11 per cent higher at 7,153.17.

The Qatar exchange index closed 0.71 per cent lower at 9,307.14. The Muscat MSM 30 index closed 0.23 per cent lower at 4,994.34. The Bahrain all share index closed flat at 1,323.54.