Abu Dhabi: The UAE’s equity markets saw slight corrections on Monday after plunging just a day earlier on the back of falling oil prices and further negative sentiment among investors.

On Monday, the Dubai Financial Market (DFM) index went up 0.99 per cent to reach 3,380.24, while the Abu Dhabi Securities Exchange (ADX) ended 0.75 per cent higher, reaching 4,225.47.

Powerhouses also saw corrections, ending the day in the green. Arabtec rose 5.97 per cent, Emaar went up 1.47 per cent, Amlak gained 3.14 per cent, Dubai Islamic Bank ended 0.98 per cent higher, and Damac Properties grew 4.86 per cent.

Air Arabia fell for the second day in a row, however, after announcing lower net profits. The company’s share prices dipped 1.57 per cent.

Analyst Osama Al Ashry said that the markets were still trading in risky areas, with the DFM index trading near its support level of 3,289.

“With the index trading at such a low level towards the end of the year, this could signal even new lows in 2016. The DFM index was quite close to its support level on Sunday, so if it does reach 3,289, the index could fall further to 3,100,” he said.

Al Ashry, a member of UK organisation, Society of Technical Analysts, noted that the DFM index reached 3,324 on Monday morning before bouncing back.

“When companies announced their results for the third quarter of this year, they [the results] were mostly below analysts’ expectations, giving a negative signal for Q4. Brent crude oil is also trading near its lowest level and is likely to dip further.

The Saudi market has been negative lately, with the index reaching new lows almost every day, so there really aren’t any positive catalysts to boost investor sentiment,” he said.

In Abu Dhabi, Dana Gas topped the gainers’ list with a 4.65 per cent increase, followed by Sharjah Islamic Bank with 4.61 per cent, Green Crescent Insurance Company with 4.11 per cent, Aldar Properties with 2.63 per cent, and Ras Al Khaimah Cement Company with 2.41 per cent.

Discussing the ADX index, Al Ashry said it had a support level of 4,178, which, if broken, could take the index down to 3,700.

“There are lots of over-priced stocks on ADX that have seen share prices jump without corrections. I expect etisalat, for example, to fall to Dh13.9, which could single-handedly take the ADX index down two per cent. Even if etisalat does get upgraded by the MSCI, I think its share prices could still fall,” he said.

On Monday, the Saudi market also saw corrections, with the Tadawul index rising 1.33 per cent to reach 7,015.29, supported by the banking sector and the petrochemical industry, which went up 1.13 per cent and 2.45 per cent respectively.

Of the 35 stocks traded on DFM, 17 went up, 13 went down, and five remained unchanged. Of the 28 stocks traded on ADX, 13 advanced, 11 declined, and four remained flat.