Dubai: Trading activity on the Dubai bourse remained sluggish for another session on Thursday, and will start selling on any recovery.
Sluggish market performance is simply driven by loss of investors’ confidence. We believe flow of negative news fading and with few catalysts coming soon could revive investors sentiments. Positive catalyst that would create interest and liquidity in the market : Emaar Development IPO, bluechip companies announcing solid results for Q3, and announcements of new initiatives (Projects) by the Federal Governemnt,” said Tariq Qaqish, Managing Director - Asset Management at MENACorp.
The Dubai index breached the 50 day moving average earlier in the week, which technical analysts indicates out at more weakness in coming sessions.
“The index continues to remain under pressure as trades below the 50 day SMA level, but somehow seen holding over the minor support level at 3,558. Break below shall target 3,465 neckline in the short term. Any corrective bounce if seen may face renewed selling from the 3,620 barrier,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note.
DP World closed more than 1.92 per cent lower at $22.46. Gulf Finance House closed 0.61 per cent higher at Dh1.66. Emaar Properties closed 0.70 per cent lower at Dh8.49. Dubai Islamic Bank closed 0.82 per cent lower at Dh6.05.
The Abu Dhabi Securities Exchange general index closed 0.22 per cent lower at 4,397.40.
Aldar Properties closed 1.33 per cent higher at Dh2.33. Dana Gas closed 2.7 per cent higher at Dh0.76. United Arab Bank jumped after reports of stake sale by Qatar Commercial Bank in the firm. Union Arab Bank closed 14.48 per cent higher at Dh1.66.
“People are looking at international markets because of liquidity and sluggishness,” Qaqish said. Liquidity has been quite low on local bourses, and on Thursday traded value tumbled to Dh189 million from an average of Dh200-250 million.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.69 per cent higher at 7,283.01 helped by buying in banks after receiving robust response to the sovereign bonds. The Qatar exchange index closed 1.29 per cent lower at 8,312.43.