Late buying triggers partial recovery in GFH shares

Dubai

Shares of Gulf Finance House (GFH) recovered partially in the last hour of trade due to bargain buying along with the wider index due to buying in some property counters.

Gulf Finance House closed 4.97 per cent lower at Dh1.72, after it recovered from the limit down level Dh1.63 after the company said it raised money to buy assets by increasing capital, thereby diluting minority shareholders. The stock was hammered on Monday, when it ended down 10 per cent.

“The stock has reached almost critical Fibonacci level of Dh1.58. The trend reversal may occur only when it gives us a bullish close over the trendline at Dh2.04,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note. Union Properties and Damac shares witnessed some recovery amid low volumes.

Emaar Properties despite posting strong results failed to attract buyers at lower levels.

“Traders may look to hold Emaar Properties and add over Dh8.40 with stop loss placed under the trailing support level at Dh8.19,” said Prakash.

The Dubai Financial Market General Index closed 0.18 per cent lower at 3,579.56.

The index is trading below the 14 & 21 Day moving average and if breaks the previous low at 3,558, the index may target 50 Day moving average at 3,503,” Prakash said, adding “only a close over 3647 shall be considered bullish.”

The Abu Dhabi Securities Exchange general index closed 0.21 per cent lower at 4,471.11.“The index broke below the 4,500 support level, turned bearish in the near term, headed towards the double bottom area in the short term,” said Prakash.

Eshraq Properties witnessed a recovery from a low. Eshraq Properties closed 1.23 per cent higher at Dh0.82.

Etisalat closed at Dh18, up 0.15 per cent. RAK Bank closed flat at Dh4.69.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.31 per cent lower at 7,103.24. The index was weighed by shares of energy and capital goods. Saudi Arabian Cooperative Insurance Co. closed 9 per cent lower at 19.88 Saudi riyals.

Alinma Bank closed 0.79 per cent lower at 16.26 riyals. Dar Alarkan Real Estate Development Co. closed 3 per cent lower at 6.14 riyals. Amana closed at 22.64 riyals, up 0.27 per cent.

The Qatar exchange index closed 0.62 per cent lower at 9,134.36. The Muscat MSM 30 index closed 0.78 per cent lower at 4,938.53. The Bahrain all share index closed 0.55 per cent lower at 1,311.80. In the wider Middle East, the Egypt EGX 30 index decreased 33 points or 0.25 per cent to 13,102.