UAE indices consolidate as traders eye fresh leads

Dubai:

Dubai and Abu Dhabi indices ended a tad higher, consolidating in a range amid low volumes, even as traders awaited further direction.

The Dubai Financial Market General index closed 0.24 per cent higher at 3,216.36, after moving in a tight range of 3,197.32-3,227.68. The Abu Dhabi Securities Exchange ended 0.26 per cent higher at 4,198.56.

Traded volumes in Dubai rose a tad in trade. Volumes rose to more than Dh300 million from around Dh180 million registered on Sunday. Traded volumes peaked at Dh1 billion in April.

“This slow momentum is expected in markets. We are at the end of May and Ramadan is in two weeks,” Mohammad Shabbir, head of equity funds & portfolios at Rasmala.

In stock specific action, Arabtec ended 0.71 per cent lower at Dh 1.40, while Gulf Finance House ended more than 2 per cent higher at Dh 0.823. Drake and Scull ended nearly 1 per cent higher at Dh 0.538. Dubai Parks ended 0.78 per cent higher at Dh 1.29. Out of a total of 35 stocks traded on the exchange, shares of 16 firms rose, while other 10 firms fell.

In Abu Dhabi, the general index closed 0.26 per cent higher at 4,198.56. Bank of Sharjah ended more than 6 per cent lower at Dh 1.26. National Bank of Abu Dhabi ended more than 1 per cent lower at Dh 8.00.

Sideways to negative

Oil prices fell over a per cent as oil production from Canada resumed and the dollar strengthened.

“Oil is down and generally the sentiment is subdued. The outlook for UAE equities is sideways to negative. The next round of results in July could be trigger for the markets,” said Shabbir, adding “things would become more tight in July, but we would have to see the outlook from contracting firms for further leads.”

On Monday, elsewhere in the Gulf, Saudi Arabia’s Tadawul exchange index was 1.78 per cent lower at 6,510.71. Qatar exchange index closed 0.45 per cent higher at 9,681.54.

Muscat exchange 30 MSM index closed 0.29 per cent higher at 5,948.41.