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Emaar, DIB force Dubai index into reverse gear

Dubai index ends in negative zone, falling from its intra-day high, which was near a key resistance level

Gulf News

Dubai: Emaar Properties and Dubai Islamic Bank (DIB) dragged the Dubai Financial Market (DFM) index lower yesterday after the gauge faced stiff resistance at upper levels.

The DFM General Index closed at 3,657.54, shedding 0.07 per cent to fall from an intra-day high of 3,676, just shy of five points from the previous high of 3,681 registered on August 6.

Emaar Properties closed 0.57 per cent lower at Dh8.70, while Dubai Islamic Bank shares were nearly half per cent lower at Dh6.18. Air Arabia closed at its intra-day high of Dh1.23, up 1.65 per cent.

“Air Arabia may target Dh1.36/1.44 in the medium term to complete its ‘U’ pattern,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.

NBADS had a technical buy on the stock at Dh1.08 in September.

Gulf Finance House, which closed 1.24 per cent higher at Dh1.63, witnessed a bulk deal of 32 million shares in auction. The auction is held during the last 10 minutes of trade.

Dubai Investments closed at Dh2.5, up 1.63 per cent higher.

“Traders may look to add further with the next target of Dh2.68/2.95 in the medium term,” said Prakash.

Dubai Entertainments closed 3.68 per cent higher at Dh0.789 while Shuaa Capital, Arabtec, Union Porperties and Salama slipped.

The Abu Dhabi Securities Exchange (ADX) General Index closed 0.17 per cent lower at 4,518.38.

Dana Gas shed 3.8 per cent to close at Dh0.76 while Manazel Real Estate slipped 3.51 per cent to close at Dh0.55.

Methaq Takaful closed 2.3 per cent lower at Dh0.85 while Union National Bank lost 1.18 per cent to close at Dh4.20.

Abu Dhabi Commercial Bank closed nearly 1 per cent lower at Dh7.34.

The overall outlook, however, is still positive for the Dubai index.

“The DFM index crossed the 50-day moving average last Tuesday. Also the index may break above the 200-day moving average at 3,545, and that should be a bullish signal,” said Vrajesh Bhandari, portfolio manager of Mena Equities at Al Mal Capital. “The breadth has turned positive, that is [a] higher [percentage of] stocks within the index are above their 200-day moving average.”

Saudi Arabia’s Tadawul index closed 0.54 per cent lower at 6,950.03, continuing its losing streak for another session.

“The Saudi market is weak again based on the same factors as last week — namely [the] risk of third-quarter result disappointments and further subsidy rationalisation in [the] National Transformation Plan expected by the end of the month,” said Bhandari.

Elsewhere in the Gulf, the Qatar Exchange index closed flat at 8,341.11 while the Muscat MSM 30 index rose 0.20 per cent to close at 5,138.90.

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