Risk averse Gulf traders resort to broad-based selling

Dubai

Broad-based selling was witnessed across Gulf indices on Tuesday, with the Kuwait index leading losses followed by Dubai, after traders went risk-averse amid rising geopolitical risks. The Kuwait index fell more than 2.5 per cent, leading regional losses.

The Dubai Financial Market General Index closed 1.79 per cent lower at 3,480.70, after losing more than 2 per cent in the previous two sessions.

“There are a number of factors that have adversely affected the market and the liquidity — the keys ones being a spike in the geopolitical uncertainty and recent developments in the region, the liquidity sapping effects of an IPO, tighter controls at brokerages especially when it comes to margin accounts etc,” Farid Samji, a market strategist in Dubai, said.

“All these factors have contributed to risk being taken-off the table by investors. But I only see these having a temporary dampening effect on the market,” Samji said.

Emaar Properties closed 1.12 per cent lower at the intra-day low of Dh7.95, the level last seen on mid-July. Other stocks like Dubai Islamic Bank, Dubai Investments also fell along with the heavyweight.

DIB closed 0.33 per cent lower at Dh5.99. “DIB is trading just over the neckline support at Dh6.00 which if breached may attract selling pressure and test the first lower target at Dh5.92/5.83,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.

Dubai Investments fell more than 1 per cent to end the day at Dh2.39. Drake and Scull closed 3.5 per cent lower at Dh1.79. Traded value was at Dh435 million.

The Abu Dhabi Securities Exchange general index closed 0.35 per cent lower at 4,419.62.

etisalat closed 1.13 per cent lower at Dh17.45, while Eshraq Properties closed 2.67 per cent lower at Dh0.73. Waha Capital ended 1.16 per cent lower at Dh1.70. Aldar Properties ended 1.33 per cent higher at Dh2.28.

First Abu Dhabi Bank closed 0.49 per cent higher at Dh10.35.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 1.45 per cent lower at 6,883.38. The Qatar exchange index closed 1 per cent lower at 7,930.78. The Kuwait Stock Exchange index closed 2.79 per cent to end at 6,143.01, leading regional losses.