Dubai: The Dubai and Abu Dhabi benchmarks slipped below the key technical support, also called as the 50-day moving average, as traders turned risk averse.
The Dubai Financial Market general index fell more than 1 per cent and slipped below the 50-day moving average of 2,704. The index closed 1.48 per cent lower at 2,672.61.
Bellwether stocks such as Emaar Properties and Dubai Islamic Bank (DIB) led the fall, with losses of as much as 3 per cent, Emaar Properties closed 2.8 per cent lower at Dh5.13. DIB closed 0.97 per cent lower at Dh5.13. Emirates NBD closed 2.54 per cent lower at Dh11.50.
“The Mena region is getting increasingly correlated to Global markets with higher participation — therefore over time the impact of Ramadan on volumes reduces,” said Vrajesh Bhandari, senior portfolio manager at Al Mal Capital.
Traded value fell to Dh122 million, lower than its 30-day average of Dh138 million. In other stocks, DP World closed 4 per cent lower at Dh17.80. Aramex closed 1.92 per cent lower at Dh4.60.
The Abu Dhabi index closed 1.39 per cent lower at 5,126. “We are waiting for the break below the 5,050 support level, in order to reinstate short positions,” Menacorp said in a technical note. Abu Dhabi Islamic Bank ended 2.15 per cent lower at Dh4.56.
Abu Dhabi Commercial Bank closed 4.95 per cent lower at Dh8.65. First Abu Dhabi Bank closed 0.64 per cent lower at Dh15.60. Aldar Properties ended 2.89 per cent lower at Dh1.68.
“We expect further drop towards Dh1.63 in the short term,” said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, FABS had a sell on Aldar at Dh1.88 on April 29. Abu Dhabi National Oil Company For Distribution, bucking the trend, closed 1.89 per cent higher at Dh2.70.
Elsewhere in the Gulf, Saudi Tadauwl index closed 0.91 per cent lower at 8,819.10. Saudi Basic Industries Corp. ended 1 per cent lower at 115.80 Saudi riyals.
Al Rajhi Bank ended 0.43 per cent lower at 69.80 riyals. The Muscat MSM 30 index closed 0.30 per cent lower at 3,863.28.
The Qatar exchange index ended nearly 1 per cent lower at 10,027.17.