Dubai: Saudi Tadawul index continued its downward trend for a fifth straight session on Monday to revisit its lowest level in nearly a month as geo-politics weighed on the sentiment.
The Tadawul index fell to an intra-day low of 8,495.80 or 2.7 per cent, before trading 1.6 per cent lower at 8,598.97. The index has been on a downward trend losing 4.6 per cent in the past five sessions.
“Geopolitical factors have been looming large on the market. Retail and corporate institutions had been selling until last week,” Muhammad Shabbir, Head of Funds and Portfolios at Saudi Kuwaiti Finance House, told Gulf News. “Going ahead, markets would be unsettled because of recent spike in tensions.”
Local institutions and retail participants had been selling till last week. For the week ending June 20, local institutions had been net sellers with $3.1 billion of outflows, while retail resorted to $100 million of selling. Foreigners have been net buyers with inflows of $1.9 billion.
Meanwhile, technical analysts say that the trend pattern suggest consolidation before an upturn.
The index has been on an upturn and subsequently a downward move for three times since October 2018. Technical analysts say that this volatility might sustain for another couple of months and the index is likely to break over the previous record of 9,400 levels.
Al Rajhi Bank closed 2.28 per cent higher at 68.50 Saudi riyals. Saudi Basic Industries Corp. ended 2.74 per cent lower at 113.60 riyals.
The Dubai Financial Market general index closed flat at 2,639.84. Emaar Properties closed 1.59 per cent higher at 4.48 riyals. Emaar Development closed 1.49 per cent higher at Dh4.08. Total traded volume stood at 1.2 million shares.
“We expected a bullish breakout after a long consolidation, and the stock price met the initial target of Dh4.15 on Monday, the next target is seen at Dh4.30 in the near term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities, told Gulf News.
The Abu Dhabi Securities Exchange general index closed 0.53 per cent higher at 5,015.34. First Abu Dhabi Bank closed 1.09 per cent higher at Dh14.90.