Buying continues on Dubai, Abu Dhabi bourse as key resistance breached

Dubai:

Traders continued their buying for another session on the Dubai bourse, after the index breached key resistance level.

The Dubai Financial Market General index closed 0.62 per cent at 3,660.27, after the index breached the key 50-day moving average of 3,620 in the previous session.

Insurance firms like Salama, Aman, Methaq, Dar Al Takaful closed 2-15 per cent higher. Salama witnessed a bullish breakout over Dh0.485 resistance, and the stock may head higher to Dh0.58 in the near term, said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note. The brokerage had a technical buy on the stock at Dh0.48.

Dubai Investments closed at Dh2.46, up 2.5 per cent. “Dubai Investments had a strong session pushed higher to the Dh2.43 but closed at strong resistance at Dh2.40, stock needs to continue its strength and break that Dh2.54 high on a weekly basis to attract new buyers,” said Hisham Khairy, Head of Institutional Trading at Menacorp.

Emaar Properties closed less than a per cent higher at Dh8.75. Air Arabia closed 1.68 per cent higher with decent volumes.

The Abu Dhabi Securities Exchange general index 0.24 per cent higher a 4,525.88.

“Traders may look to buy the fresh bullish breakouts with next target seen at 4,572 in the near term,” Prakash said.

Etisalat closed 0.25 per cent higher at Dh18.05. “The trend is up headed higher towards the previous high of Dh18.90 in the short term,” said Prakash.

Aldar closed 1.25 per cent higher at Dh2.43.

“Aldar needs to close above the Dh2.41 today to give a buy signal on a weekly basis with targets Dh2.51 then Dh2.67,” said Khairy. Abu Dhabi Commercial Bank closed at Dh7.41, up 1.23 per cent.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.89 per cent higher at 6,951.50, recovering from the previous day’s 2 per cent losses.