Dubai: Most of the shares listed on the Dubai Financial Market and the Abu Dhabi Securities witnessed sell-off, breaching their 52-week low, further dimming the outlook for UAE indices.

Union Properties hit a low of Dh3.61. Dubai Investments witnessed a fresh lowest point of Dh1.08 in a year. Emaar Development also hit the lowest level in 52 weeks at Dh3.26. Waha also hit its lowest level of Dh1.47 in 2019. GGICO also hit a 52-week low of Dh0.152, and Bank of Sharjah hit a low of Dh0.955, the lowest in 52 weeks.

The Dubai index is finding difficulty to breach over the critical resistance at 2,576, and any close below the immediate support at 2,520 shall extend the decline to the previous lows at 2,480/2,430 in the near term.

- Shiv Prakash | Senior analyst with First Abu Dhabi Bank

Others such as DXB Entertainments, Emaar Properties, Aldar Properties, RAK Properties and Shuaa Capital are nearing their lowest levels in a year.

“There has been a risk aversion in UAE markets as traders are worried that there might be more declines,” said an analyst who did not wish to be named.

So far, only around 25 companies out of around 120 firms have announced their fourth quarter results with only banks outperforming among the various sectors. Banks on an average have shown a 4 per cent increase in the fourth quarter net profit. Emaar Properties, Damac Properties, DFM, Shuaa, Gulf Fiance House are yet to publish their results.

The Dubai Financial Market general index closed 1.32 per cent lower at 2,496.35. The DFM index has shed only 35 points despite weakness in real estate stocks as Emirates NBD has held up, keeping the downside limited.

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“The Dubai index is finding difficulty to breach over the critical resistance at 2,576, and any close below the immediate support at 2,520 shall extend the decline to the previous lows at 2,480/2,430 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said in a note.

When compared to real estate stocks such as Damac Properties, which has lost 18 per cent since the start of this year, Emaar Malls, which is down 15 per cent since January 1, Emaar Development (down 24 per cent) and Emaar Properties (down 6 per cent in the same time period), Emirates NBD has gained 14 per cent since the start of 2019. Emirates NBD has about 7.94 per cent weightage on Dubai index.

The Abu Dhabi Securities Exchange general index closed 0.7 per cent lower at 5,046.46. Aldar Properties closed 2.63 per cent lower at Dh1.48. “Aldar may fall further and target Dh1.40 in the short term,” Prakash said.

Etisalat closed 0.35 per cent lower at Dh16.90.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.43 per cent lower at 8,535.97. The parallel market or Nomu index was 5.38 per cent lower at 3,331.05. The Muscat MSM 30 index closed 0.41 per cent lower at 4,141.54.