Investors follow stock market activity at the Dubai Financial Market. Image Credit: Gulf News

Dubai: The Dubai index has been trying to gain buying momentum and form a base to run higher towards 3,000 level, the highest level since May. 

Activity has been picking up in shares like Arabtec, Damac, Emaar Properties, resulting in 4 per cent gains on the Dubai index, which has under-performed other regional indices. The Dubai index has shed 16 per cent so far in the year.

“A close over 2,850 shall attract fresh inflow and the index may extend gains towards the higher resistance at 3,000,” Shiv Prakash, senior analyst with First Abu Dhabi Bank (FAB) Securities said in a note. On Thursday, the Dubai index closed 0.12 per cent lower at 2,825.86. Arabtec shares rose, extending gains for another session, Arabtec closed 2.63 per cent higher at Dh2.34.

“Arabtec’s positive results and ability to enhance its debt ratios was welcomed by investors that moved volumes relatively higher than the 150 million daily average,” said Issam Kassabieh, senior financial analyst at Menacorp. Gulf Finance House closed 1 per cent higher at Dh1.27. Gulf Navigation closed 1.82 per cent higher at Dh1.12. Emaar Properties closed 0.76 per cent lower at Dh5.20. Traded value stood at Dh189 million, and Arabtec contributed to 31 per cent of the total.

The Abu Dhabi Securities Exchange general index closed at 5,028.75, up 0.25 per cent. “Investors at this stage have started looking again at stocks and their dividend yields while they also get a good idea of where companies’ earnings could be ending so close to the full year results,” Kassabieh said.

“Buying could be expected on both indices with a focus on the Dubai Financial Market due to most equities underperforming this year, making valuation quite attractive,” Kassabieh added.

The Abu Dhabi index has gained out-performed the other regional indices with 14 per cent gains.

On Thursday, Abu Dhabi Commercial Bank shares closed 1.24 per cent higher at Dh8.14. Eshraq, which closed 2.95 per cent higher at Dh0.63, witnessed traded volume of 17 million shares. “Traders may buy Eshraq shares as the stock is expected to extend gains towards Dh0.66 to 1 in the medium term,” Prakash Sazid.

Dana Gas shares closed 1.75 per cent lower at Dh1.12. “Stocks to look at for next week include Dana Gas which could be positively surprising for investors and could possibly move back to earlier highs,” Kassabieh said.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.63 per cent lower at 7,743.39. Alinma Bank closed 0.65 per cent lower at 21.40 Saudi riyals, while Saudi Basic Industries closed 0.81 per cent lower at 123 riyals.

The Muscat MSM 30 index closed 1.02 per cent higher at 4,491.34. The Qatar exchange index closed 1.13 per cent higher at 10,368.17. The Kuwait all share index closed 0.29 per cent higher at 5,103.87. The Bahrain index closed 0.2 per cent lower at 1,313.21.