Dubai: Dubai index edged lower on Tuesday on continued profit-taking after the index gained more than 10 per cent so far in the year.
The Dubai Financial Market General Index ended 4,069.27, down 0.63 per cent after moving in the range of 4,061.15-4,109.67. The gauge has gained more than 10 per cent so far in the year.
“We would generally see volatility, and that could mean some soft moves after we witnessed some fantastic rally in the last 4-5 weeks, so I wondn’t be surprised to see people locking in some profits at these levels,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.
I still have a positive outlook for Dubai index, but it may touch below the 4,000 levels in the interim, said Osama Al Ashri, member of British organisation, Society of Technical Analysts, adding Dubai index may touch a low of 3,930 in May before going up.
“Real estate and banks would be dominant and that would see some trading activity. Even if we see some short-term negativity, that should not cloud the long term outlook,” Khokhar said.
Gulf Finance House ended 0.66 per cent lower at Dh0.750. Arabtec ended 2.55 per cent lower at Dh2.68. Damac Properties ended 0.97 per cent lower at Dh3.06. Dubai Investment, however, bucked the trend ending 1.32 per cent higher at Dh3.06.
Gulf Finance House may hit a new low of Dh0.69, before witnessing a recovery, Al Ashri said, adding Damac Properties may witness consolidation, while Emaar Properties may witness strong support at Dh7.53.
Out of a total 35 stocks traded on the exchange, shares of 12 companies rose, while shares of 18 companies fell.
The Abu Dhabi Securities Exchange General Index ended 0.78 per cent higher at 4,589.19.
Abu Dhabi may face risk, if it breaches the support level of 4,484, said Al Ashri.
Shares of Dana Gas fell 4 per cent to end at Dh0.48 after the company registered a more than 70 per cent decline in net profit on falling oil prices.
Out of a total of 24 stocks traded on the exchange, shares of 11 companies fell, while shares of 7 companies rose.
Elsewhere in the Gulf, Qatar Exchange Index ended 0.70 per cent higher at 12,207.64, while Muscat Securities MSM 30 index ended 0.15 per cent higher at 6,351.66.
Egypt’s bourse rose 1.4 per cent with most stocks positive after the HSBC purchasing managers survey showed that business activity in the private sector, excluding oil, came close to stabilising in April after a three-month contraction.
A senior International Monetary Fund official told Reuters on Tuesday that Egypt’s economic policy reforms were starting to pay off and growth was strengthening, although the country still faced a difficult situation.