No respite for Dubai index as key indicator breached
The index has shed 6.7% after it breached the 50-day moving average of 2,702
DUBAI
The Dubai index tumbled 2 per cent on Sunday, extending fall for another session, led by selling in heavyweights such as Emaar Properties and Dubai Islamic Bank.
The Dubai index fell 2.16 per cent to end at 2,519.43. The index has shed 6.7 per cent after it breached the 50-day moving average of 2,702, a key technical indicator.
“The DFM broke major technical supports last week and today has turned negative since the beginning of the year,” Vrajesh Bhandari, senior portfolio manager at Al Mal Capital, said. The Dubai index shaved off gains registered earlier in the year, and the index is now in negative on a year to date basis.
Emaar Properties closed 3.05 per cent lower at Dh4.13, while Dubai Islamic Bank closed 1.61 per cent lower at Dh4.90. “Sentiment around the small cap speculative stocks in UAE is very poor.” Bhandari added. Gulf Finance House closed 6.58 per cent lower at Dh0.795.
“We revise our buy rating on GFH to accumulate with a revised target price of Dh0.95 (from Dh1.25). We believe the company’s strategy to target treasury income will not aid in achieving incremental profitability,” First Abu Dhabi Bank Securities said in a note.
Arabtec closed 10 per cent lower at Dh1.44. Emaar Malls closed 2.22 per cent lower at Dh1.76. Emaar Development closed 2 per cent higher at Dh2.21.
Total traded volume rose to 200 million shares compared to 30-day average of 140 million shares. The Abu Dhabi Securities Exchange general index closed 0.29 per cent higher at 4,732.96. First Abu Dhabi Bank closed at Dh13.80, up 0.73 per cent. Etisalat closed 1.04 per cent lower at Dh15.5. Abu Dhabi Commercial Bank closed at Dh8.43, down 3.10 per cent.
The Tadawul reversed early gains and was lower. The Tadawul index was 1 per cent lower at 8,512.81, after rising as much as 8,693.
“Saudi began well in the green but could not hold on to these gains — suspect traders do not want to carry positions across sessions, given the uncertainties in global markets. Most Qualified Financial Institutions are absent on Sundays,” Bhandari said. Al Rajhi Bank closed 1 per cent lower at 69.20 Saudi riyals.
Saudi Basic Industries Corp. ended 2.3 per cent lower at 110.60 riyals.
Elsewhere in the region, the Muscat MSM 30 index closed 0.05 per cent lower at 3,860.83. The Qatar exchange index closed 0.02 per cent higher at 9,873.43.