Dubai: Late selling was triggered in Dubai stocks after Emaar Properties breached a key support level, causing the index to close below the keenly watched 3,500 level.

The Dubai Financial Market had seen flat midsession trading but in the last half-hour, Emaar breached the Dh7.14 mark, attracting further selling. A lack of sufficient bids saw it slide to an intraday low of Dh7.02 before registering a slight recovery to close 2.09 per cent lower at Dh7.04.

The Dubai Financial Market General Index (DFMGI) closed 1.51 per cent lower at 3,480.46.

“I see this as a technical correction,” Talal Touqan, Head of Research and Advisory at Al Ramz Capital said. “The index moved below the moving averages, triggering selling pressure in the market.”

In stock-specific action, Gulf Finance House (GFH) closed 2.13 per cent lower at Dh0.92, while Dubai Parks and Resorts was 1.84 per cent down at Dh1.60. Dubai Investments shed 2 per cent to Dh2.11 while Dubai Islamic Bank fell 1.44 per cent to Dh5.48. Out of a total of 34 stocks traded on the exchange, the shares of 28 companies fell, while those of four rose. The rest remained steady.

Short-term bottom

“The downside might not stop here, and the index is very close to a short-term bottom at the moment, which may be at 3,480,” Touqan said. “Foreigners have been selling because local participation was lower recently, and there is no urge to buy.” Shares worth Dh315 million were sold on Wednesday, down from the Dh600 million seen a few weeks ago, as volumes continued their downward trend.

In the capital, the Abu Dhabi Securities General Index closed 0.49 per cent lower at 4,513.16.

Rak Properties shed 1 per cent to close at Dh0.59 while Dana Gas was down 0.55 per cent at Dh1.79.

Aldar Properties lost 1.79 per cent to Dh2.74 while Eshraq Properties shed 2.79 per cent to end the session at Dh0.77.

Elsewhere in the Gulf region, Saudi Arabia’s Tadawul All Share Index closed 1.12 per cent lower at 6,027.89.

The Qatar Exchange index was 0.63 per cent lower at 11,186.14 while the Muscat Securities MSM 30 index closed 0.07 per cent higher at 5,853.29.