Dubai: Dubai index may sustain gains in coming sessions helped by positive results from companies, and strong crude oil.
The Dubai Financial Market General Index ended 4.51 per cent higher at 3,840.22, after hitting a high of 3,844.27.
“We had reasonably good results from banks last week that helped Dubai and if results continue to be good and any profit-taking doesn’t take away all of the gains seen on Friday, then probably Dubai and Abu Dhabi would perform well this week,” said Sanyalaksna Manibhandu, Manager of Research at NBAD Securities.
“The banking results have been good so far only for the exception for Abu Dhabi Islamic Bank. Investors would also eye results from blue chips in coming days and weeks. Banks last week that disappointed with distribution were hit last week despite better than expected results,” said Manibhandu.
Volumes:
“I reckon that trading values won’t get back to Dh2 billion overnight. But if results are better than expected and crude begins to stabilise and trends up in weeks and months, then we may see equity trading value may go up over a Dh1 billion,” said Manibhandu.
Volumes have been on at least half of the normal average of Dh1 last month as most investors stayed away from trading looking at volatile crude. On Sunday, the DFM recorded volumes of Dh837 million.
New targets:
The Dubai index may extend gains to hit a new resistance level.
“Dubai index may hit a new target above 4,139 this month because the index didn’t touch risky support area above 3,500,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts. “I see Dubai Islamic Bank may hit resistance level of Dh7.55 during this month, I recommend to sell Arabtec and buy DFM or GFH.”
Dubai Islamic Bank ended 4.14 per cent higher at 6.790. DFM, which ended 9.47 per cent higher at Dh2.08, may hit a resistance level of Dh2.44 this month, said Al Ashri.
ADX general index may touch a new resistance level of 4,720, said Al Ashri.
Dubai Investments may hit a new target of Dh2.80, while Gulf Finance House may touch a new resistance level of Dh0.34.
“I recommend to buy Bank of Sharjah at current levels and may hit new target of Dh2/2.19,” said Al Ashri. It ended at Dh1.95, up 3 per cent.
Elsewhere in Saudi Arabia, where Tadawul was the second biggest gainer in the region, may hit a new target of 9,780, before falling to 8,750, said Al Ashri.
Investors may book profits in Dar Al Arkan at resistance area of 10.85 Saudi Riyals, as it is overbought on the chart. It ended at 10.40 Saudi Riyals.
