Dubai:
In case of a correction, local stock market traders could resort to bargain buying.
The Dubai Financial Market General Index has been on a losing streak, and has shed nearly 5 per cent in the past one month.
“We are still positive on the overall environment. We may see a start of a correction that was long overdue. Investors need to wait for the correction to happen, valuations to go down, and then you buy back into that,” Saleem Khokhar, head of equities at NBAD’s asset management group said.
And with likely correction in the global markets, and all likelihood of a follow-through selling in regional markets, analysts are advising to position themselves in select stocks.
“The dividend season is over, and we have a correction coming in, so we may want to use that opportunity if it gets overdone to get into very strong names particularly in mid-cap space, where we see diversified opportunities,” Khokhar said.
“There are fewer opportunities in Abu Dhabi given the lack of catalyst compared to Dubai,” Khokhar added.
Action
In stock-specific action on Wednesday in Dubai, Emaar Properties closed 0.27 per cent lower at Dh7.33. Gulf Finance House closed 0.37 per cent lower at Dh2.67.
Dubai Islamic Bank closed 1 per cent lower at Dh5.54. Arabtec closed 0.69 per cent lower at Dh0.858.
Out of a total 33 stocks traded on the exchange, shares of 22 firms rose, while shares 6 fell. The rest remained steady.
In Abu Dhabi, First Gulf Bank closed 0.77 per cent lower at Dh12.90. Etisalat closed 0.55 per cent lower at Dh18.05. Abu Dhabi Commercial Bank closed 1.31 per cent lower at Dh6.76.
Out of a total of 30 stocks, shares of 18 firms fell, while other 5 rose. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.16 per cent lower at 6,832.30. The Qatar exchange index closed 0.85 per cent lower at 10,395.98.
