The Dubai Financial Market. Image Credit: Ahmed Ramzan/Gulf News Archives

Dubai: The UAE bourses have been closing in the positive zone over the past two sessions, but analysts want consistency in price and volume recovery before building long positions.

The Dubai Financial Market general index 0.64 per cent higher on Sunday at 2,549.93, after rising 2.62 per cent in the last three sessions. Traded volume hit 200 million shares, the highest volume recorded this year.

“This recovery [on the Dubai bourse] is welcome but unless we see a sustained pickup in buying, traders will opt to sell on rallies,” said an analyst who did not wished to named. The Dubai index has gained a mere 0.80 per cent since the start of the year," said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, in a note.

“We are cautiously optimistic on Dubai market. We see a lot of value here, but investors need to take a measured approach in terms of phasing their investment,” Vrajesh Bhandari, portfolio manager with Al Mal Capital said. Emaar Properties has been behind this rally in Dubai. Emaar Properties extended gains for a second session closing 1.98 per cent higher at Dh4.18. The stock has gained 8.57 per cent in the past two sessions."

“A recovery towards Dh4.30-4.4 shall attract renewed selling pressure,” Prakash added.

Image Credit: Gulf News

Emaar Development closed more than 3 per cent higher at Dh3.82. Emaar Malls closed 1.89 per cent higher at Dh1.62.

In other stocks, Gulf Finance House closed 1.30 per cent higher at Dh0.933. Dubai Islamic Bank closed 0.20 pe rcent higher at Dh5.06. Air Arabia extended losses for another session, closing 1.08 per cent lower at Dh0.92. “Air Arabia’s misfortune brought by its exposure to Abraaj led the stock to its bottom limit in the early hours only to slightly recover later as investors sold off the stock not only on the back of the impairment posted but also discounted the fact the airline wouldn’t be paying dividends based on their current cash position,” Issam Kassabieh, Senior Financial Analyst at Menacorp said.

The Abu Dhabi Securities Exchange general index closed at 0.65 per cent higher at 5,069.07. The Abu Dhabi index has gained 3.1 per cent so far in the year, building on to 11 per cent gains seen last year. Aldar Properties closed 3.64 per cent higher at Dh1.71. First Abu Dhabi Bank witnessed a minor rally, closing 0.81 per cent higher at Dh15.02. Etisalat closed at Dh16.94, up 0.59 per cent.

Upward bias

The Egyptian index led regional gains after the central bank announced a 100 basis points cut in interest rates, which was more than expected. The Egyptian EGX 30 index was 1.48 per cent higher at 15,206.33.

“The 100 basis points cut was more than expected and is very comforting. As expected, the Egyptian stocks are up. Going forward, there would be an upward drift until the next inflation reading,” Bhandari said. Palm Hills and Ezz Steel shares were up more than 5 per cent.

The Egyptian index has gained 15 per cent since the start of the year. Elsewhere in the region, Saudi Arabia’s Tadawul index closed 0.40 per cent lower at 8,592.04. The Muscat MSM 30 index closed 0.79 per cent lower at 4,076.88.