Dubai index ends 1% lower; crude, Q2 results eyed

Dubai: Dubai index closed nearly a per cent lower on Tuesday weighed by weak crude oil prices. Saudi index stabilised after falling more than 2 per cent in the previous session.

The Dubai Financial Market General Index ended 0.86 per cent lower at 4,110. Oil prices fell to their lowest in nearly six months on Tuesday, as a rout in the Chinese stock market cast further doubt over the outlook for crude demand in the world’s top commodities consumer.

Emaar Properties ended 0.38 per cent lower at Dh7.90, while Arabtec ended 1.67 per cent lower at Dh2.36. Gulf Finance House closed 0.27 per cent higher at Dh0.730.

Gulf Finance House may go down again to Dh0.67, said Osama Al Ashri, member of British organisation, Society of Technical Analysts.

Dubai Islamic Bank ended 1.79 per cent lower at Dh7.15. “DIB is still positive, and may hit a resistance level of Dh7.78 by next month,” said Al Ashri. Amlak Finance closed 1.24 per cent lower at Dh2.38.

Amlak Finance may correct further to hit a support level of Dh2.23, said Al Ashri.

Key support

“UAE indices are near key support areas, and is very stable, compared to global indices,” said Al Ashri, adding Dubai index’s support is pegged at 4,044/3,988, while the major support exist at 3,736.

“I still have a positive outlook for Dubai index, which may recover to resistance level of 4,384 by next few weeks,” said Al Ashri, adding “I don’t advise to buy etisalat at current levels, but may recover to hit fresh highs if it breaches resistance level Dh15.40.” Etisalat along with Dubai Islamic Bank are due to publish their results.

Abu Dhabi Commercial Bank is waiting for new high of Dh9.8 by next few months, said Al Ashri.

The Abu Dhabi Securities Exchange ended 0.37 per cent lower at 4,854.63.

“Abu Dhabi index still has a positive outlook and may hit a new target of above 5,000 by next few weeks,” said Al Ashri.

Elsewhere in the Gulf, the Tadawul All Share Index ended 0.12 per cent lower at 9,090.84 after falling more than 2 per cent in the previous session.

“Tadawul may record new low for the quarter without breaking level of 8,783, and may recover to resistance level of 9,500 by next month,” said Al Ashri.

Dar Al Arkan ended 0.23 per cent higher at 8.67 Saudi riyals,

Dar Al Arkan may witness consolidation between Dh8.20-8.90 in the few weeks, Al Ashri.

Elsewhere in the Gulf, Qatar Exchange Index ended 0.30 per cent lower at 11,831.33, while, Muscat Securities MSM 30 index closed 0.17 per cent lower at 6,556.74.