The Dubai index fell on Monday, accumulating losses for another session as traders resorted to mild profit-taking.
The Dubai index fell 0.56 per cent to end at 2,760.14. The index has gained 9.3 per cent since March 28 and touched a high of 2,834 on April 22, and fell 2.7 per cent in the past five sessions.
“The index may see further profit-taking and may see support at 2,700, which is the 50-day moving average,” said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said in a note. “The short-term trend continues to remain positive as the 50-day moving average holds strong.”
Bellwether Emaar Properties closed 1.05 per cent lower to end at Dh4.70, while Dubai Islamic Bank closed 1.52 per cent lower at Dh5.17. Other stocks such as Gulf Finance House and Emaar Development also fell. GFH closed 6.32 per cent lower at Dh0.99. Emaar Development ended at Dh3.90, down 0.76 per cent.
DP World closed 9 per cent higher at $21. Traded volume rose 138 million shares from 82 million reported in the previous session.
“It would seem that investors have already begun to enter the Ramadan spirit with limited volumes recorded or it could have been the impact of Drake and Scull’s fiasco on market sentiment but trading volumes were clearly lower than the previous week,” Issam Kassabieh, Senior Financial Analyst at Menacorp, said.
Banking stocks such as First Abu Dhabi Bank (FAB), Abu Dhabi Commercial Bank (ADCB), Abu Dhabi Islamic Bank (ADIB) witnessed profit-taking as traders sold from highs. The Abu Dhabi index has shed 2.1 per cent in the four sessions, falling from a high of 5,426 seen on April 23, a result of 13 per cent gains since March 14. FAB closed 1.2 per cent lower at Dh16.40, ADCB closed 0.6 per cent lower at Dh10. Aldar Properties closed 1.61 per cent lower at Dh1.83.
Investors would continue to look at first quarter results for direction.
“FAB reports earnings today which need to come out strong in order to support the stock’s current price level otherwise price to earnings won’t look attractive,” Kassabieh said.
“Investors today will look ahead for Damac’s general assembly in hopes they could see a potential discussion over dividends, which seem unlikely for the year 2018,” Kassabieh added.
In other Gulf markets, Saudi Tadawul index was 0.06 per cent higher at 9,271.01. Al Rajhi Bank was 0.27 per cent lower at 74.80 riyals.
The Muscat MSM 30 index closed 0.12 per cent higher at 3,934.62.