Abu Dhabi: The UAE stock markets bounced back on Monday as the Dubai Financial Market (DFM) index gained 2.5 per cent to end trade at 4,724.95, while the Abu Dhabi Securities Exchange (ADX) general index rose 1.48 per cent to reach 4,987.83.
The figures mark a quick recovery from Sunday when the DFM index fell 5.99 per cent on the back of a 9.9 per cent plunge by powerhouse, Arabtec.
On Monday, Arabtec fell 1.79 per cent but remained the most traded stock in terms of value. With over Dh1.5 billion worth of trade, the company accounted for 54 per cent of the total value of trade on DFM.
Shares started the day at a price of Dh4.1, and remained relatively stable until shortly before 11.30am when there was a steady incline in prices. Shares ended the day at their highest point of Dh4.38.
Other powerhouses in Dubai ended the day in the green, though. Union Properties gained 7.61 per cent, Deyaar Developments went up 7.63 per cent, Gulf Finance House rose 2.78 per cent, and Emaar inclined 1.89 per cent. The DFM share price also rose 4.88 per cent.
Meanwhile, the DFM index started the first hour of trade with a plunge to reach a low of 4,414.8. This was followed, however, by an incline throughout the rest of day until the index closed at its highest point of the day.
Analyst Osama Al Ashry attributed the gains on Monday to a correction following the steep drop on Sunday.
“The total trade value was strong as it approached Dh3 billion, but the DFM index needs to break a resistance level of 4,880 in order to ensure there is real purchasing power in the market rather than speculators,” he said.
Al Ashry, a member of UK organisation, Society of Technical Analysts, added, “I think the DFM index will fall again by the end of this week ... Traders will probably liquidate their shares before Eid.”
Discussing Arabtec, Al Ashry said the outlook for share prices was negative on the medium and long terms. He added that if prices reach Dh4.11, investors can expect new lows from the construction giant.
As for ADX, the analyst said, “The market appears to be quite weak. I am not optimistic with the banking sector. Elsewhere, Al Waha Capital is showing positive performance, and can reach new highs if prices break the Dh3.37 level.”
Of the 31 stocks traded on DFM, 26 went up, four went down, and one remained unchanged. Of the 34 stocks traded on ADX, 22 advanced, seven declined, and five remained flat.