Dubai: The UAE’s main stocks indices fell slightly on Sunday amid profit-taking activity, after some stocks rallied last week.
The Dubai Financial Market (DFM) index slid 0.29 per cent to end at 2,817.72, while the Abu Dhabi Securities Exchange (ADX) general index stayed above the 5,000-mark level, ending 0.53 per cent lower at 5,002.26.
Trade values were low, with just over Dh227 million traded on DFM, as analysts cited a lack of catalysts to spur strong buying or selling activity. The dip in indices also came hours ahead of a meeting of oil ministers from Opec (Organisation of Petroleum Exporting Countries) in Abu Dhabi. The meeting is widely expected to discuss production cuts amid a drop in oil prices.
Shiv Prakash, senior research analyst at First Abu Dhabi Bank Securities, said there was “mild profit-taking” amid what he described as a “calm and quiet” trading session.
“As of now, confidence is gradually building up. Overall, for the DFM index, we need to see a break above 2,850. That’s the resistance level, and then we will see further volumes coming into the market. Currently, what people are doing is buying on the dip, and as the market rallies, they sell and book profits,” he said.
In an analyst note, Prakash said that any profit-taking on the DFM should find strong support at 2,784. He added that an index close above 2,850 will extend gains towards the higher resistance at 3,000.
In stock-specific movements, Gulf Navigation was the most actively traded company in Dubai, with its share prices ending 0.89 per cent lower. Arabtec’s prices also declined, by 3.85 per cent, after rallying over the past week on the back of strong earnings in the third quarter of the year.
In Abu Dhabi, three of the index heavyweights — First Abu Dhabi Bank (FAB), Etisalat, and Aldar Properties — all saw their share prices drop. Aldar dropped the most of the three, falling 3.31 per cent, as FAB inched down 0.33 per cent, and Etisalat fell 0.81 per cent.
Prakash said in his note that a break for the ADX index above 5,039 will be considered bullish towards the higher targets of 5,080 and 5,200 in the medium term.