Dubai: Mild buying in Emaar Properties helped the Dubai index close in the positive zone, but the overall outlook remains bearish as long as the gauge trades below the key resistance level.
The Dubai Financial Market General index closed 0.45 per cent higher at 3,561.20.
Air Arabia hit its highest level since mid-March, ahead of third quarter results.
The airline closed at the day’s high of Dh1.19, up more than 4 per cent.
After the capital reduction, Drake and Scull, which opened with a new adjusted price, closed 2 per cent lower at Dh1.47.
Shuaa and Arabtec both fell nearly 1 per cent, while Union Properties closed 2 per cent lower.
The Abu Dhabi Securities Exchange general index closed 0.38 per cent higher at 4,427.34.
United Arab Bank closed 13.16 per cent higher at Dh2.15. The bank has seen accumulation, with no sellers, after Commercial Bank decided to sell a 40 per cent stake.
“Today’s market move is based on the likes of Eshraq, Dana Gas – names that we generally stay away from,” said Vrajesh Bhandari, portfolio manager with Al Mal Capital.
Eshraq Properties closed 1.37 per cent lower at Dh0.72.
Dana Gas closed flat at Dh0.73.
Going forward, the UAE markets are expected to continue with sluggish movement.
“The UAE markets are expected to be in sideways territory until the third quarter earnings start hitting – to provide some direction,” Bhandari said.
A probable candidate could be Emaar Properties, which has been the driver of markets ever since it made an announcement of a primary offering of its development unit.
“A probable lead that could lead a turnaround in sentiment – the Emaar IPO.
If brent prices break the 60 barrier, that should boost optimism in general,” Bhandari said.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.11 per cent lower at 7,226.08. “Within the wider region, investors should keep an eye on Ma’aden in the run up to the economic forum later this month, which we think it is overvalued,” Bhandari said. The Qatar exchange index closed 0.12 per cent higher at 8,301.79.
