Dubai:

Traders on the Dubai index breathed a sigh of relief on Thursday, after panic selling earlier in the week, when the index slipped more than 6 per cent in the previous 4 sessions, with technicals indicating that the index is in an oversold terittory.

Emaar Properties fell below Dh8 to the lowest level in five months. Other names like Dubai Islamic Bank, and Damac Properties were also hit. “We are seeing buying across the board, after a rather tough week for the markets. It is not surprising, the high beta stocks are rebounding faster. Quality names like Emaar and Aramex are still available at decent valuations. Relative to Emerging Markets, Dubai Index is at a discount, at a time when the economy seems to be doing rather well,” said Vrajesh Bhandari, portfolio manager with Al Mal Capital.

The Dubai index has given negative return of more than 2 per cent, and accumulated gains of nearly 10 per cent in the past one year. The index closed 1.03 per cent higher at 3,449.81, after the index started declining from the start of the week post the geopolitical uncertainty.

“We shall treat the recovery as the opportunity to sell on a rally. Buy traders who are holding cash may look to buy selective stocks and book gains near the higher resistance levels,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.

“On the lower side, if the support of 3,397 is breached, we may see extend the slide to 3,313 in the medium term,” he added.

In other stocks, Gulf Finance House closed 3.57 per cent lower at Dh1.45, while Drake and Scull closed 1.76 per cent higher at Dh1.73.

Dubai Investments closed 0.42 per cent higher at Dh2.40. Dubai Islamic Bank closed 0.17 per cent higher at Dh5.99.

The Abu Dhabi Securities Exchange general index closed 0.16 per cent higher at 4,376.22.

Abu Dhabi National Hotels closed 9.26 per cent higher at Dh2.95. Invest Bank closed 5.93 per cent higher at Dh2.5. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.41 per cent lower at 6,907.98. The Muscat MSM 30 index closed 0.48 per cent higher at 5,055.24.

“Going forward, we are quite optimistic on the Gulf stock markets, both in terms of earnings growth as well as market performance. There are several factors that will guide market movement, listing of Emaar Development, the sovereign budgets, further economic reforms in KSA as well as FTSE/MSCI Index upgrade events,” Bhandari added.