Dubai: Smaller stocks witnessed robust buying regardless of prices on UAE bourses.
Gulf Finance House, Amanat, Shuaa Capital, RAK Properties, and Eshraq Properties, Tabreed all hit a fresh 52-week high amid frantic buying by speculators.
“Most of the biggest scrips didn’t participate in the rally, but these smaller scrips did,” Vijay Harpalani, Fund Manager, Asset Management Al Mal Capital told Gulf News.
Analysts said Shuaa and Gulf Finance House are in a parabolic move, where buying interest increases dramatically regardless of the price.
Gulf Finance House closed at Dh1.69, up 13.42 per cent. A total of 312 million shares were traded on the name, about 30 per cent of the total.
“Investors rushed just to get into the stock regardless of price, in fear of being left behind,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a daily note.
Buying in smaller stocks helped volumes to reach over Dh1.34 billion, as against more than Dh945 million in the previous session.
Traders utilised yesterday’s panic drop to add further positions.
The Dubai Financial Market General Index closed 0.15 per cent lower at 3,274.06. Traders are expecting market to attract more volumes in the near term, which may benefit the DFM stock. “The stock is holding firm over the previous low and may ignite recovery action back higher towards the neckline resistance at Dh1.30 in the short term,” said Prakash.
The Abu Dhabi Securities General index closed 0.95 per cent lower at 4,282.46.
Eshraq Properties closed Dh1.02, up 12.09 per cent. “Price action on higher volumes hints at further recovery towards the previous high of Dh01.15 in the short term,” said Prakash. RAK Properties closed at Dh0.67, up 3.08 per cent.
Elsewhere in the Gulf, Saudi’s Tadawul index closed 2.33 per cent higher at 6,528.05. The Qatar exchange index closed 0.14 per cent lower at 9,960.95.
Market movement would be volatile ahead of the Opec and Federal Reserve meeting in a few weeks.
