Dubai stocks close slightly higher, ending seven-day fall

Dubai: The Dubai stock market ended marginally higher after seven days of declines as retail investors picked up some stocks that were going cheap. However, institutional investors were still sellers as they took some profits on the shares they held.

"Though DFM saw a small rally, the overall mood of the markets remains extremely weak," said Mousa Haddad, head of accounts, discretionary trade for National Bank of Abu Dhabi.

"The institutional investors are still selling. It is the retail segment which is buying. The market is not for long term investment, it is only for trading in and out."

The Dubai Financial General Index rose 0.73 per cent to end at 1,472.82, with 13 stocks advancing and nine stocks declining. Four remained flat. Since the New Year, the DFM index has fallen 10 per cent.

Among the gainers were Emaar Properties, up 1.08 per cent to Dh1.87; Air Arabia, rose 6.33 per cent to Dh0.84; and Dubai Islamic Bank climbed 5.30 per cent to Dh1.59.

The Abu Dhabi Securities Exchange Index fell 1.22 per cent to 2,136.64, led by real estate stocks. Among the big losers were Aldar Properties, which fell 7.60 per cent to Dh2.43; Abu Dhabi Commercial Bank, shed 7.53 per cent to Dh1.35; and Methaq Takaful Insurance lost 9.73 per cent to Dh3.34.

In the region, Qatar and Oman bounced back after continuous decline, surging 4.91 per cent and 4.30 per cent respectively. The US stocks had rallied overnight to end positively. The Down Jones Industrial Average was up 279 points to close at 8,228. The Nasdaq also finished 66 points higher to 1,507.

"The whole week we saw a downward trend and we were expecting a bounceback ... " said Haddad. "It is going to trade in a range between 1,400 and 2,000 and then I expect it to go down unless there is some catalyst."

Many investors in the UAE are expecting poor corporate results when they start coming out from next week, as company earnings in Saudi Arabia and other Gulf countries have been noticeably weak.

"I don't see any sustainable rally at this stage due to the uncertainty plaguing the real estate sector," said Rami Sidani, head of Middle East and North Africa Funds of Schroders Investment Management. "We might see some bear market rallies. A more sustainable rally can happen only when we see more clarity on the measures taken by the government."