Dubai:
Dubai index followed the moves in Arabtec for another sessions on Thursday on lack of fresh leads.
Arabtec has a weightage of only 2.42 per cent on the index, but has been the most actively traded stock due to plans of restructuring ahead of the rights issue of Dh1.5 billion, which many analysts see below the actual requirement.
“It is not the level of the Arabtec weighting in the DFMGI, but the impact of Arabtec’s movement on sentiment and other high beta stocks that is influencing the Dubai benchmark,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities said in a note.
Arabtec rose as much as 6 per cent early in trade at Dh0.995, but fell more than a per cent Dh0.955. The Dubai Financial Market General Index closed 0.33 per cent lower at 3,633.91.
Going ahead, traders may look to sell Arabtec on rallies, Prakash said in a daily note.
“Recovery in Arabtec may target the trendline resistance at Dh1.01 and only a close over Dh1.04 shall turn it bullish towards Dh1.11,” Prakash said.
Dubai Islamic Bank closed 0.80 per cent lower at Dh6.20. Drake and Scull closed 2.01 per cent lower at Dh0.487. Union Porperties closed more than 2 per cent lower at Dh0.99. Emaar Properties closed less than 1 per cent lower at Dh7.59.
Emirates Islamic Bank (EIB), 99 per cent owned by Emirates NBD, continued its bullish run for another session. EIB closed more than 14 per cent higher at Dh10.40, after gaining more than 500 per cent in the past month or so.
Going ahead, the overall index may turn bullish again.
“The recovery from the support zone of 3,550 must break over the keenly watched levels of 3,670/3,738 for the trend to turn bullish again,” Prakash said.
The Abu Dhabi Securities Exchange closed 0.34 per cent higher at 4,653.39.
Etisalat closed 1.35 per cent higher at Dh18.75, while Abu Dhabi Insurance closed 14.81 per cent higher at Dh3.10.
Abu Dhabi Commercial Bank closed 0.79 per cent lower at Dh7.50. Union National Bank closed 1.33 per cent lower at Dh4.44. Eshraq Properties closed 1.77 per cent higher at Dh1.15.
Out of a total of 34 stocks traded on the exchange, shares of 12 firms rose, while other 10 fell.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.24 per cent lower at 7,045.99. The Qatar exchange index closed 0.25 per cent lower at 10,925.40.
The Muscat MSM 30 index closed 0.31 per cent lower at 5,849.52.