Dubai: The rally in Dubai index on Sunday paused awaiting fresh moves from Emaar Properties, which held at elevated levels.
Emaar Properties has become a proxy for performance in Dubai index of late, very much like what Arabtec or Gulf Finance House was a few months ago.
Emaar Properties closed 0.26 per cent higher at Dh7.60.
The Dubai Financial Market General Index closed at 0.36 per cent lower at 3,387.95.
“Dubai index The stock has been facing strong resistance at Dh7.7 I don’t think it will break it soon, Nothing has changed investors are cautious in exiting their positions,” said Hesham Khairy, Head of Institutional Trading at Menacorp.
Shares of Kuwait-based companies also surged. HITS Telecom closed 3.11 per cent higher at Dh0.596.
“Most of the retail investors are speculating on Kuwaiti names. Nothing has changed in Kuwaiti names,” Khiary said.
Khairy expects the focus to remain on small caps, “the rest of the market would remain quiet.”
“For the Dubai index 3,500 is a strong resistance. The mentality is the exit on anything which has profits,” Khairy added.
Surge in Dana Gas
Dana Gas went limit up with strong volumes, a trend which has been continuing for the past four sessions.
“It’s just speculation on hopes of a big announcement this week,” Khairy said.
Dana Gas closed at Dh0.60, up 15 per cent on day. The stock has almost doubled in 10 sessions.
The stock is headed higher straight to its previous high of Dh0.66/0.95 in the medium term, said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note. NBADS had a technical buy call on the stock on June 6.
About 79 million shares were traded in last 5 minutes of trade. Last week Dana Gas witnessed trading in 330 million shares. Rak Properties closed 3 per cent higher at Dh0.62.
The Abu Dhabi Securities closed at 4,498.72, up 0.49 per cent.
