Traders at the Dubai Financial Market (DFM)
Traders at the Dubai Financial Market (DFM). Image Credit: Virendra Saklani/Gulf News

Dubai: Traders on the Dubai index has a reason to cheer ahead of second quarter results.

The index has been trading above its 50-day moving average of 2,645 for the past three sessions, activating bulls in select bluechips, which ended at the day’s high.

On Sunday, the Dubai Financial Market general index closed 0.71 per cent higher at 2,704.78.

The rally in the Dubai index started on May 20 and the gauge is up 7.6 per cent since then.

Analysts say that the rally is in anticipation of the second quarter results later in the week.

“If the robust buying continues, the index may jump to 2.850 levels,” Shiv Prakash, senior analyst at First Abu Dhabi Bank Securities (FABS) said.

The breadth of the market is positive. Shares of Emaar Properties, Dubai Investment, Amlak Finance, DXB Entertainments, Aldar Properties, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Waha Capital ended at the day’s high. Traded value jumped 82 per cent to Dh200 million compared to the 30-day average of Dh113 million.

Union Properties closed 3.61 per cent higher to be at Dh0.344. Traders may buy Union Properties at Dh0.338 with a target of Dh0.36-Dh0.40 in the short term, Prakash said.

The Abu Dhabi Securities Exchange general index closed 0.08 per cent higher at 5,056.26. Aldar Properties closed 3.9 per cent higher at Dh2.13. Aldar Properties has gained 31 per cent since May 19.

“The trend in Aldar is up and if the trailing support at Dh2.05 holds strong, Aldar may extend gains to Dh2.17/2.50 in the medium term,” Prakash said.

FABS had a buy on Aldar Properties at Dh1.55/1.76 since December.

Waha Capital recovered after falling more than 100 per cent since January 1. “The stock is seen forming a bottom near the long term neckline support zone at Dh0.90, expected to attract buying and ignite corrective bounce to Dh1.15/1.32 in the medium term,” Prakash said.

Elsewhere in the Gulf, the Saudi Tadauwl index was at 9,012.88, up 0.50 per cent.