Dubai index falls more from key resistance level
Tadawul eases as analysts feel shares are ‘too richly valued’
Dubai: The Dubai index extended losses on Thursday after the gauge struggled to breach the key technical indicator amid continued pressure on Emaar Properties, which has the highest weightage on the index.
The Dubai Financial Market General index closed 0.83 per cent lower at 2,791.71. The Dubai index had been struggling to breach its 50-day moving average of 2,855. The index had earlier attempted to breach the important level for five consecutive times since Mid-August.
“The Dubai index may extend fall back towards the previous low at 2,727,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said. Emaar Properties closed 2.98 per cent lower at Dh4.88. Dubai Islamic Bank closed 0.56 per cent lower at Dh5.32.
DP World closed 1.71 per cent higher at $19. Deyaar Properties closed more than 2 per cent higher at Dh0.444.
The Abu Dhabi Securities Exchange general index closed 0.12 per cent higher at 5,007.12.
“The overall trend is bullish we expect a bullish breakout which shall continue the up-move towards given target zone at 5,200,” Prakash said.
First Abu Dhabi Bank closed 0.27 per cent higher at Dh14.66. Etisalat closed at Dh16.72, up 0.36 per cent. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.14 per cent lower at 7,997.61.
“We believe that most of these Saudi large caps are too richly valued and are moving on technical factors rather than fundamental ones,” Al Mal Capital said in a note.
The Tadawul index has been on a positive trajectory with 13 per cent gains since January 1. “By sticking to our process — which is based on a bottom-up and value-driven approach — we have been avoiding most of these names and this had some negative consequences on our relative performance,” the note added.
The Muscat MSM 30 index closed 0.22 per cent higher at 4,525.78. The Qatar exchange index closed 0.13 per cent higher at 9,902.48.