Abu Dhabi: The UAE’s equity markets ended the month and the first quarter of the year on Tuesday in the green following many sessions of sideways trading. The month was marred by negative investor sentiment reflected in low trade volumes and low demand even for the markets’ powerhouses.
On Tuesday, the Dubai Financial Market (DFM) index went up 2.03 per cent to reach 3,514.40, bringing the total drop in the index throughout March to 9 per cent. During the month, though, the index reached a low of 3,232 — a 16 per cent plunge since March 1.
Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index rose 0.83 per cent to reach 4,467.93. The fall in the markets through the past few months is backed primarily by low oil prices that have been fluctuating since the last quarter of 2014, which also drove many foreign investors out of the markets.
The recent attacks by Saudi Arabia on Yemen were another factor behind weak trade. The ADX saw similar trends to Dubai, albeit more resilience against the news.
In Dubai, most powerhouses ended the day with higher share prices. Emaar, which topped the market in terms of trade value, saw a 1.38 per cent increase, as Dubai Islamic Bank gained 2.65 per cent, Dubai Investments Co rose 3 per cent while Damac Properties was up 5.13 per cent.
However, Orascom Construction and DFM share prices were down 2.56 per cent and 0.66 per cent respectively.
Analyst Osama Al Ashry said the market was expected to go down in the short-term, though there is an uptrend on the medium-term.
“The DFM index has a support level of 3,278 in the short-term, which is a very important level because if it reaches that, we can see the index falling another 1,000 points or so. The resistance level in the medium-term is 3,750, but the more important aspect here is that the index does not fall because it has been for quite some time,” he said.
Al Ashry, a member of UK organisation, the Society of Technical Analysts, also discussed individual stocks saying that he expected Arabtec to fall below Dh2 in April. DIB was still positive, though, with targets of Dh6.69.
“I think oil prices will stay at these levels for quite some time, so I’m not expecting an increase any time soon, which also means that the market could remain at its current levels for some time. Investors are now waiting for [first quarter] results in order to compare them to [the first quarter of] 2014 because these will give indicators on the overall annual performance,” he said.
In the capital, Invest Bank topped the gainers’ list with a 14 per cent rise, followed by Ras Al Khaimah Cement Company with 5.06 per cent, Abu Dhabi Commercial Bank with 3.52 per cent and Abu Dhabi National Co for Building and Materials (Bildco) with 3.23 per cent.
Of the 32 companies traded on DFM, 20 went up, nine went down and three remained unchanged. Of the 28 companies traded on ADX, 11 advanced, 10 declined while seven remained flat.
