UAE stocks face renewed selling pressure ahead of Q3 results

Dubai: UAE stocks witnessed renewed selling pressure on Wednesday ahead of third quarter results. However, Saudi Arabia’s Tadawul index was higher.

“Most of the stocks have breached critical support levels, and are trading below the 50-day moving average,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities said in a daily report. The 50-day moving average is considered a key level to determine the trend.

The Dubai Financial Market General Index closed 1.28 per cent lower at 3,362.17. Shares worth Dh250 million were traded compared to an average of Dh500 million.

“Any recovery seen in the near term should be on higher volumes, otherwise the index won’t sustain higher,” Prakash said.

Among the losers, Gulf Finance House fell more than 3.70 per cent to end at Dh1.04. Dubai Entertainment closed 1.32 per cent lower at Dh1.32. Emaar Properties closed 1 per cent lower at Dh6.90.

On a positive note, Tabreed jumped early in trade and witnessed a high of Dh1.92, up more than 8 per cent day, but saw selling with low volumes. The stock finally ended 2.26 per cent higher at Dh1.81 and the second-most active stock in trade.

Out of a total of 37 stocks traded on the exchange, shares of 28 firms fell, while other 6 rose.

In Abu Dhabi, weak banks, and property stocks triggered a fall. The Abu Dhabi Securities Exchange index closed 0.35 per cent lower at 4,393.58.

“The main trend still remains bearish as the market failed to close over the resistance at 4,520,” said Prakash.

Aldar Properties fell 1,53 per cent to close at Dh2.57, while Union National Bank closed 3.66 per cent to be at Dh3.95. First Gulf Bank closed 0.87 per cent lower at Dh11.35.

Out of a total of 26 stocks traded on the exchange, 15 stocks fell, while other 7 rose.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.08 per cent higher at 5,585.11. Alinma Bank ended 0.53 per cent higher at 11.30 Saudi Riyals, while Saudi Basic Industries closed 3.05 per cent higher at 84 riyals. Qatar exchange index closed 0.15 per cent lower at 10,372.20.