Dubai index sees temporary bounce in weak market

Dubai

Dubai index jumped on Monday as traders took advantage of the stocks, which were trading near their support level, even as many analysts expected a weak trend on the gauge.

The Dubai Financial Market General Index closed 0.74 per cent higher at 3,318.12. Union Properties closed 2.39 per cent higher at Dh0.900, while Emaar Properties closed 0.43 per cent higher at Dh7.18.

“It appears to be a broad-based rally based largely on technicals. A number of stocks have taken a beating recently on low volumes, prices do appear attractive and a relief rally ensues...I don’t suppose this rally will be durable,” Farid Samji, Head Of Asset Management at Daman Investments told Gulf News.

In other stocks, shares of Dubai Financial Market closed 4.81 per cent higher at Dh1.09. Amanat closed 2.70 per cent higher at Dh1.14. Among the losers, Gulf Finance House closed 0.91 per cent lower at Dh2.18. Emirates NBD closed more than a per cent lower at Dh8.

“Sentiment-driven retail oriented swing traders are very much at play,” Samji added. Traded value continued to be weak. Traded value came in at Dh267 million compared to over Dh400 million. Out of a total of 34 stocks traded on the exchange, shares of 24 firms rose. Analysts predict that fresh and renewed selling will take place in the following weeks.

The Abu Dhabi Securities Exchange general index closed 0.08 per cent lower at 4,492.92.

“Trend in Abu Dhabi index remains bearish with next support seen at 4,380. Only a break over the resistance at 4,620 shall be considered bullish,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.

Bank of Sharjah closed 6.20 per cent lower at Dh1.21. National Bank of Ras Al Khaimah closed 1.15 per cent lower at Dh4.30. National Bank of Abu Dhabi or also called as First Abu Dhabi Bank closed 0.45 per cent lower at Dh0.45. Union Cements closed 1.71 per cent lower at Dh1.15.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.56 per cent higher at 6,821.71 on bargain hunting.

Dar Alarkan Real Estate Development Co. closed 2.46 per cent higher, while Saudi Basic Industries Corp. closed 0.34 per cent higher at 97 Saudi riyals.

The Qatar exchange index closed 0.11 per cent lower at 10,112.39. The Muscat MSM 30 index closed 0.03 per cent lower at 5,385.21. The Bahrain index closed 0.10 per cent higher at 1,318.72.

In the wider market, the Egyptian index closed flat at 13,207.94.