Dubai: The Dubai index, which ended 1.5 per cent on Thursday, may continue to witness weakness due to continuing uncertainty in global markets and oil.

The Dubai Financial Market General Index closed 1.61 per cent higher at 3,570.37, while the Abu Dhabi Securities Exchange General Index closed 0.60 per cent higher at 4,378.14.

“There is a lot of nevoursness in the air, and all depends on China, US rates and oil,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.

Technical analyst expected a further downside in markets.

“Dubai index is trading in a high risk area, and if it breaches the support level of 3,389, we may see a new low for this year,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts.

The index witnessed a 2015 low of 3,241 last week.

“Abu Dhabi may hit its lowest level in 2015, if it breaches support level of 4,190, so I advise traders and investors of high risk of trading in this area,” said Al Ashri.

In stock-specific movements, Arabtec closed 2.73 per cent higher at Dh1.88, while Emaar Properties closed 3.72 per cent higher at Dh6.42.

Arabtec may hit a new low to support level Dh1.56, said Al Ashri, adding If Emaar Properties may breach support level of Dh6.07, we may see a new low of Dh5.49.

“If Gulf Finance House breaches the support level of Dh0.525, we may see a new low below Dh0.50,” Al Ashri said. Gulf Finance House closed 2.04 per cent higher at Dh0.550.

In Abu Dhabi, Aldar Properties may consolidate in this area, and if it breaches support level of Dh2.11, we may see a new low of Dh1.8, said Al Ashri, adding First Gulf Bank is still negative, and may hit a new low of Dh11.70, if it breaches support level of Dh13.4.

Buyer

“I woud not be selling but I’ll be on the buying side in this market scenario,” Khokhar said.

“Valuations are attractive for a lot of MENA equities, as this wave of uncertainty settles, we may have a recovery fairly quickly,” said Khokhar, adding “despite lower growth and budget issues, we are quiet underpriced, of where we are trading at the moment, but that doesn’t mean that we can’t go lower.”

Saudi’s Tadawul index closed 0.22 per cent higher at 7,383.86. “If Tadawul index breaches support level of 7,081, we expect new low of 5,900 by next few weeks,” said Al Ashri.