Dubai’s penny stocks see mild traction
GFH closes more than 5% higher at Dh0.846 after reassurances from the company
Dubai: Small stocks, those whose prices are below Dh1, witnessed buying in the last hour of trade in Dubai, led by a Gulf Finance House (GFH) recovery after traders saw positive movement in US futures.
GFH closed more than 5 per cent higher to end at Dh0.846, after the company reassured investors that the recent fall in share prices had nothing to do with its fundamentals.
“The stock has been affected primarily due to the international and regional market pressures and margin calls that have impacted investors in the stock markets,” GFH said in a statement posted on Dubai Financial Market (DFM) website.
Shuaa closed 2.56 per cent higher at Dh0.80 while Deyaar Properties rose 2 per cent to Dh0.332 and Union Properties gained 3.5 per cent to Dh0.414.
Despite index heavyweight Emaar Properties slipping 1 per cent to Dh3.91, the DFM general index closed 0.06 per cent higher at 2,468.85.
“We are waiting for a retracement higher towards the 2,830 resistance level in order to reinstate short positions,” Menacorp said in a note.
The Abu Dhabi Securities Exchange (ADX) general index closed 0.34 per cent higher at 4,817.11 even as trades remained thin. Dana Gas was up 1.91 per cent higher to Dh0.80.
“The market is testing support at 4,700. We are waiting to see reversal signals in order to reinstate long positions,” the Menacorp note said. “The next important support is the 4,520 level.”
Elsewhere in the Gulf, Saudi Arabia’s Tadawul All Share Index closed 0.09 per cent lower at 7,710.93.
Saudi Basic Industries Corp fell 1.2 per cent to 115.60 Saudi riyals (Dh113) while Amana Cooperative Insurance Co was down 1.35 per cent at close at 21.90 royals.
The Muscat MSM 30 index closed 0.31 per cent higher at 4,326.15 but the Qatar Exchange index fell 0.11 per cent to 10,222.98. The Kuwait All Share Index closed 0.13 per cent lower at 5,059.27.