Dubai bourse sees continued selling
The index managed to stay above the critical support of 2.706
Dubai: The Dubai Financial Market (DFM) witnessed another round of selling on Monday as traders remained cautious ahead of a long holidays.
The DFM general index closed 0.44 per cent lower at 2,727.41, as it managed to stay above the support level of 2.706 that has proved critical after the gauged bounced back from these levels twice.
Emaar Properties closed 1.2 per cent lower at Dh4.74.
“Emaar shares are struggling to find a bottom as the stock has been trading near to its previous low. A close over Dh4.85 shall be considered bullish, and ignite recovery to Dh4.95/5.20 in the short term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said in a note.
“Emaar’s movements appear to be concerning at this time of year where investors are expected to be taking positions instead of exiting the market,” Essam Kassabieh, senior financial analyst at Menacorp said.
Some stocks witnessed mild selling, whereas others remained stable.
Dubai Islamic Bank closed more than a per cent lower at Dh5.24. Dubai Investments closed more than 1 per cent lower at Dh1.40. Tabreed closed 3.85 per cent higher at Dh1.62. Emirates NBD closed 2.22 per cent higher at Dh9.20.
“Emirates NBD and Emirates Islamic will be holding their board meetings; investors are hoping to get more information on the Turkish acquisition in the weeks to come,” Kassabieh said
The Abu Dhabi index continued its out-performance due to strong buying in banking stocks and etisalat.
The Abu Dhabi Securities Exchange general index closed 0.5 per cent higher at 4,971.43.
Etisalat closed at Dh17.1, up 1.18 per cent.
“Etisalat is expected to trade sideways from Dh16.80-17.40, before an upward move to the second target of Dh18,”
“Saudi Arabian Refineries shares are expected to surge towards the initial target at 46.40 riyals and then test 49 riyals in the medium term,” Prakash said.
Saudi Arabia’s Tadawul index was 0.28 per cent higher at 7,533.29.
Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.73 per cent lower at 4,393.06. The Qatar exchange index closed 1.02 per cent higher at 10,356.62.