Strong global leads fans risk appetite in small UAE stocks

Dubai: The Dubai index staged continued recovery as strong US markets fanned risk appetite in small stocks like Gulf Finance House and Salama Insurance.

The Dubai Financial Market general index closed 0.21 per cent higher at 2,531.35. “The Dubai index may target the immediate resistance at 2,600 in the near term. However traders, who bought in the recent move, may look to sell on the rally,” Shiv Prakash, senior analyst with First Abu Dhabi Securities said in a note.

Gulf Finance House closed 7.28 per cent higher at Dh0.958, and was the most active stock in trade contributing a fifth of the total traded value. Salama Bank closed 4.93 per cent higher at Dh0.511. “Volumes are seen increasing in Salama Insurance hinting accumulation. The stock may gain further momentum,” Prakash said. Dubai Entertainments closed more than 6 per cent higher at Dh0.260.

The Abu Dhabi Securities Exchange general index closed 0.12 per cent higher at 4,904.10. Dana Gas closed nearly 2 per cent higher at Dh0.97, Union National Bank ended 1.05 per cent higher at Dh4.80. Elsewhere in the Gulf Saudi Arabia’s Tadawul index closed 1.3 per cent higher at 7,932.24.

Trading activity

Going forward, the trading activity within the MENA region is likely to track the annual earnings from leading companies, followed by the sentiments in global markets and movement in oil prices, Allied Investment Partners said in a note.

For the regional markets, the performance during the week was positive as the six indices ended in green, while Oman was the only index within the region to end in red, the note added.