Investors at the Dubai Financial Market. Image Credit: Virendra Saklani/Gulf News Archives

Dubai: Dubai index fell a tad, snapping an eight day gaining streak, as traders resorted to profit-taking.

The Dubai Financial Market general index closed 0.28 per cent lower at 2,661.25, after rising 7.5 per cent in the past eight sessions. The market breadth was negative. Emaar Properties closed 0.21 per cent lower at Dh4.80. Gulf Finance House (GFH), Damac, Dubai Invesments, Emaar Malls ended in the negative. GFH closed at Dh0.962, down 2.83 per cent. Damac Properties closed at Dh1.36, down 4 per cent. Dubai Investments closed 0.80 per cent lower at Dh1.24.

Traded value stood at Dh273 million, higher compared to the previous session. “Investors are looking at momentum at this stage; quickly rising trading volumes across all equities in the early hours would show more certainty, indicating active trading and not “good till cancel” orders pending being executed,” Essam Kassabieh, Senior Financial Analyst at Menacorp said.

Image Credit: Gulf News

Dubai Islamic Bank closed 0.97 per cent higher at Dh5.22. “Dubai Islamic Bank regained some of its earlier losses, while real estate small caps also recovered on positive momentum stirred by Emaar,” Kassabieh said.

In other stocks, Arabtec closed 0.94 per cent higher at Dh2.14. DP World closed 2 per cent higher at $17.35.

The Abu Dhabi Securities Exchange general index also snapped a gaining streak due to profit-taking in Aldar First Abu Dhabi Bank. The Abu Dhabi index closed 0.47 per cent lower at 5,115.75. FAB closed 0.14 per cent lower at Dh15.08.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed at 8,433.09, down 0.9 per cent. The Muscat MSM 30 index closed 0.35 per cent higher at 4,067.67.

Technicals suggest a ‘sell’ in Emaar?

Technical analysts have been pointing out weakness in Emaar Properties due to formation of ‘hanging man pattern’ near the 200-day moving average, which indicates bearish reversal. For fundamental analysts, however, it may still be a buy and hold.

Emaar Properties closed 0.21 per cent lower at Dh4.80, after breaching its 200-day moving average of Dh4.84. The stock has gained 25 per cent in the past eight sessions.

“We may see some profit taking from current levels which may trigger a drop to the lower support at Dh4.55/4.40 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

FABS is advising traders to sell Emaar Properties at Dh4.73 for a target of Dh4.55/4.40.