Dubai: Dubai stocks ended a tad lower on Sunday, reversing its morning high after lower than expected jobs data lowered expectations of a rate hike by the United States this year.
The Dubai Financial Market General Index closed 0.70 per cent lower at 3,594.13, after rising as much as 3,638.36. Shares worth Dh288 million were traded, compared to an average of Dh1.5 billion a few weeks ago.
“Trading is lacklustre, and we don’t have much international participation as it’s a Sunday, although we had a good run on Friday,” said Saleem Khokhar, head of equities at National Bank Abu Dhabi’s asset management group.
“We are waiting for more global catalyst including oil prices,” he added.
On Friday, crude rose after US explorers reduced the number of rigs drilling for oil to a five-year low, signalling further drops in production. US equities rose after a disappointing jobs report from the world’s biggest economy gave way to a rally in beaten-down energy and materials stocks.
In Dubai, Arabtec ended 2.07 per cent lower at Dh1.89, while Emaar Properties ended 1.22 per cent lower at Dh6.47. Dubai Investments closed 0.42 per cent higher at Dh2.40.
“Emaar’s daily chart remains in a downtrend, testing the resistance level at 6.80. Possible reversal patterns have formed with activation level coming with a confirmed break above the resistance level,” MENACORP said in a note.
Of 38 stocks traded on the exchange, shares of 20 firms fell, while the other eight rose.
Focus
“Focus would now turn to the third quarter numbers, which are expected to be out later this week,” said Khokhar.
Investors would closely look at the third quarter results to look for any impact of falling oil prices on the real economy post the regional downgrade of growth estimates by the IMF.
“Now it is a matter of if we have adjusted enough in the lower growth environment,” said Khokhar.
In Abu Dhabi, the general index ended 0.05 per cent lower at 4,517.52.
“Current trend behaviour suggest that long term bullish scenarios will be on hold in the near future and traders should refrain from accumulating any new long term position on the Abu Dhabi index,” the MENACORP’s note added.
Etisalat shares rose more than 1 per cent to end at Dh14.45, while Dana Gas closed 1.82 per cent lower at Dh0.54.
Elsewhere in the Gulf, Qatar Exchange Index closed 0.53 per cent higher at 11,514.12, while Muscat Securities MSM 30 index closed 0.20 per cent higher at 5,802.51.
Saudi’s Tadawul All Share index was 0.04 per cent higher at 7,344.96.
