DUBAI: Volatility in the UAE markets is likely to continue in coming sessions after the Dubai index shed about 14 per cent last week.
On Sunday, the Dubai index rebounded as much as 4.8 per cent following a recovery in global markets.
“We might see some volatility in coming days. It will depend a lot on international news flow especially on Europe and crude oil front,” said Sebastien Henin, head of asset management at The National Investor.
Markets were gripped by panic earlier last week after weak Eurozone inflation data, poor demand at a Spanish bond auction and negative figures from top Eurozone economy Germany added to fears the bloc could slip into recession.
“Oil prices are at low. Saudi Arabia has not given any guidance on output, we still have geopolitical tensions,” said Henin, indicating uncertainty in global markets.
On Friday, brent crude, a global benchmark for oil prices, extended its reboud on speculation that a 25 per cent decline from its high was overdone. Brent for December delivery increased 34 cents to end at $86.16 on the London-based ICE Futures Europe exchange. Prices are down 4.5 per cent this week and 22 per cent this year.
Brent crude is expected to stabilise at $85 (Dh312) a barrel this week, experts say, following last week’s four-year low amid weaker global demand and market oversupply.
Support:
“Market will witness strong support at 4,280 levels and I don’t think market will cross this support,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts.
However, Arabtec may still witness some further downside. “Arabtec is still expensive and it will go down again, with a support at Dh2.85,” said Al Ashri.
On Sunday, Arabtec said it plans to launch the first phase of a huge housing project in Egypt before the end of this year.
In March, Arabtec announced it would build one million homes in Egypt in a $40 billion project backed by the Egyptian and UAE governments, as part of efforts to ease the country’s housing shortage.
Arabtec, which was the second most active stock, ended 8.10 per cent higher at Dh3.87 per share.
Most stocks in green:
Most of the stocks on the Dubai Financial Market ended in green on Sunday. On the index, out of a total of 30 shares traded on the exchange, shares of 2 companies declined, shares of 26 rose, while shares of the rest 2 companies remained unchanged. In Abu Dhabi, out of a total of 30 companies, shares of 19 companies rose, while 8 of them declined and the other 3 remained steady. NMDC was the top gainer with 14.93 per cent gains on the ADX. The shares finally ended at Dh7.7.
