Dubai: The Dubai index may consolidate in a range with a tough resistance at the keenly-watched 4,200 level, analysts said on Sunday.
The Dubai Financial Market General Index ended 2.06 per cent at 4,172.14 on Sunday, after hitting a high of 4,173.04.
“It is important to note that sentiments have obviously switched from relief and belief to an early stage of optimism after breaking the 4,000 mark — a critical psychological barrier for the index,” said Talal Touqan, head of Research and Advisory at Al Ramz Capital.
Touqan expects further consolidation for the Dubai index this week, with a target range of between 4,020 and 4,250.
Gulf Finance House, which was the most active stock in trade, jumped 14.87 per cent to Dh0.726, while Damac Properties ended 7.10 per cent higher at Dh3.32. Out of a total of 32 shares traded on the exchange, the shares of 26 companies rose while those of two companies fell.
Strong volumes
The strong initial first-quarter results, Iran’s accord with the world powers and higher oil prices have been the catalysts for positive trade and elevated activity.
Volumes have recovered from low activity in the first quarter to March. On Sunday, shares worth more than a Dh1 billion were traded on the exchange.
“Foreigners were net buyers with domestic trades following, while ample liquidity was still on the sidelines due to a fruitful season of cash dividends,” Touqan said.
Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group, said “banks and real estate [will] continue to do well, along with consumer space.”
The index gained more than 22 per cent in the previous 20 sessions.
Saudi index also rises
Tadawul index also rose led by gains in Saudi Basic Industries.
Saudi’s Tadawul All Share TASI Index ended 1.15 per cent higher at 9,725.17. Saudi Basic Industries ended 3.49 per cent higher at 100.25 Saudi Riyals even as its net profit sank to 3.93 billion riyals ($1.05 billion; Dh3.84 billion) in the three months to March 31, down from 6.44 billion riyals a year earlier.
Alinma Bank ended 3.49 per cent higher at 100.25 Saudi Riyals.
Meanwhile, the Abu Dhabi Securities Exchange General Index ended 0.75 per cent higher at 4,666.39 led by gains in Abu Dhabi Commercial Bank.
Abu Dhabi Commercial Bank ended 2.18 per cent higher at Dh7.5, after it recorded a first-quarter net profit of Dh1.42 billion ($386.7 million), slightly short of analyst forecasts.
Out of a total of 27 companies traded on the exchange, shares of 18 companies rose, while shares of five companies fell.
