DUBAI: Traders on Dubai bourse were dejected as the index breached the key support level, with some worrying about margin pressure on further selling.
The Dubai Financial Market General index has shed 7.23 per cent from the high of 2,834 seen on April 22. On Sunday, the Dubai index extended losses to end at 2,629.90, down 1.6 per cent, after losing 3.11 per cent in the last week.
“Selling pressure got accelerated after the index breached its 50-day moving average. Selling may see further momentum as most traders opted to unwind their long positions to sit on cash,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities Bank said in a note.
Dubai Islamic Bank closed 0.39 per cent lower at Dh5.11, while Emirates NBD closed 3 per cent lower at Dh11.10. Gulf Finance House closed 4.31 per cent lower at Dh0.955.
In other stocks, Emaar Properties closed 1.3 per cent lower at Dh4.42. Salama Insurance continued its fall for another session. Salama Insurance closed 8.4 per cent lower at Dh0.491.
Abu Dhabi index bucks trend
The Abu Dhabi index bucked the trend, closing higher due to buying in First Abu Dhabi Bank.
Traded value on Dubai bourse fell to Dh121 million, down from the 30-day average of Dh138 million.
“Going forward, the trading activity within the region will continue to remain subdued due to the lower trading volumes experienced in Ramadan. Additionally, global factors will continue to dominate the movement in regional markets, especially the developments related to trade between the US and China,” Allied Investment Partners said in a note.
The Abu Dhabi Securities Exchange general index closed 0.9 per cent higher at 5,098.30. The index had shed 3.62 per cent in the previous week.
FAB closed 1.92 per cent higher at Dh15.90. Emirates Telecom Group Company or Etisalat closed 1.64 per cent higher at Dh16.12. Abu Dhabi Islamic Bank ended 3.07 per cent lower at Dh4.42.
The Tadawul index tumbled 2 per cent, extending losses for another week. The Tadawul index closed 2.06 per cent lower at 8,674.66.
Saudi Basic Industries closed 1 per cent lower at 114.80 Saudi riyals. Al Rajhi Bank ended 0.86 per cent lower at 69.20 riyals.
Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.06 per cent higher at 3,865.51. The Bahrain index ended 0.60 per cent lower at 1,427.71.
The Qatar exchange index closed nearly 1 per cent lower at 9,928.22. The Kuwait all share index closed 1.92 per cent lower at 5,691.99.