Dubai: The UAE’s main equity indices were little changed on Wednesday, just a day before some of the world’s largest oil-producing nations meet in Vienna to discuss their deal to cut production levels.
The Dubai Financial Market (DFM) index fell 0.36 per cent to reach 3,351.51 as traded values remained weak, with Dh304.5 million in trade, and most share prices moved sideways. Meanwhile, the Abu Dhabi Securities Exchange (ADX) general index inched down 0.3 per cent to reach 4,532.24.
Technical analyst Osama Al Ashry attributed the sideways movement to a lack of catalysts in the markets, and said he expected the UAE’s market to record new lows this quarter.
“It’s not just in the UAE where indices are moving sideways; it’s the same pattern across the world. The Dow Jones Industrial Average is also moving sideways after reaching record highs, the TASI (Saudi Arabia’s Tadawul index) is showing weak trade, and there isn’t really much in terms of news to move any of these indices,” he said.
From a technical perspective, Al Ashry said he expected the DFM index to reach 3,181 this quarter, a 5 per cent drop from Wednesday’s closing price. For the Abu Dhabi index, Al Ashry said it might touch the support levels of 4,421, followed by 4,289.
“Given the current trade values, it’s clear Ramadan will also see weak trade, so I wouldn’t be surprised if by the end of the quarter the indices have fallen as much,” he said.
In Dubai, Ajman Bank was the most actively traded stock in terms of value, with its share prices rising 1.74 per cent. Meanwhile, Damac inched up 0.35 per cent, as Dubai Islamic Bank and Arabtec went up 0.17 per cent and 1.63 per cent respectively.
Share prices of Emaar Malls, which announced on Wednesday it has agreed to buy a 51 per cent stake in Namshi, the e-commerce platform, fell 1.9 per cent to reach Dh2.58.
The sideways movements in equities come amid gains in oil prices, which have jumped nearly 10 per cent since May 9 on optimism regarding Opec’s (Organisation of Petroleum Exporting Countries) meeting on Thursday where oil producers are expected to extend their deal to curb production levels.