DSI shares re-test January high as Emaar holds near key support

Dubai

Drake and Scull shares hit their highest level since January on Sunday and was the most active stock on Dubai bourse, while Emaar Properties held near its key support of Dh6.95.

DSI rose as much as Dh2.27, just 2 fils away from the January high of Dh2.29. DSI closed at Dh2.23, up 1.85 per cent. DSI was the actively traded stock on Dubai bourse, contributing to 34 per cent of the total of Dh291 million.

The Dubai Financial Market General index closed 0.31 per cent higher at 3,365.89.

Emaar at key zone:

In other stocks, Emaar Properties closed 0.29 per cent higher at Dh6.97, after hitting a low of Dh6.95, from where the stock has seen a reversal from the area for three times.

Emaar shed 9 per cent in the past one week after the company announced a Dh4 billion special dividend post the IPO of unit, which was perceived to be lower than expected.

“We would be a buyer around these levels in Emaar and expect the stock to recover from here,” Hisham Khairy, head of institutional trading at Menacorp.

The stock is likely to see a recovery.

“Non-stop selling has pushed the stock lower towards the critical neckline support zone on the weekly chart at Dh6.95,” expecting a reversal, said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities. Amlak shares rose more than 3 per cent to be at Dh1.05 with surging volumes. Traded volumes rose to 21 million shares, the highest since last month. Dubai Islamic Bank closed 0.65 per cent higher at Dh6.19. Emaar Development closed 0.19 per cent higher at Dh5.31.

The Abu Dhabi Securities Exchange general index closed at 4,348.74, up 0.22 per cent. Adnoc Distribution closed steady at Dh2.67.

Etisalat closed 0.29 per cent higher at Dh17.10. Abu Dhabi National Energy or Taqa closed 5.26 per cent higher at Dh0.6.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.21 per cent higher at 7,090.88 helped by rising transportation and energy shares.

The Qatar exchange index closed 0.06 per cent higher at 8,211.94. The index has been on a declining trend has shed more than 21 per cent so far this year.

“We are still not excited by this market; the blockade issue is nowhere near resolution and more importantly, current valuations do not offer any margin of safety,” said Marwan Haddad, Lead Portfolio Manager MENA Equities at Al Mal Capital.

The Muscat MSM 30 index closed 0.28 per cent higher at 5,075.84.

The Bahrain bourse index closed at 1,265.59, up 0.12 per cent.