Action seen in insurance shares on Dubai bourse

Saudi’s Tadawul index recovers more than 1 per cent on the back of firm oil

Published: 16:19 December 27, 2016

Siddesh Suresh Mayenkar, Senior Reporter

Dubai: Shares of insurance companies rose on Tuesday, witnessing further accumulation on Dubai bourse.

Salama rose more than 5 per cent to close at Dh0.501, while Dar Al Takaful jumped more than 12 per cent to be at Dh1.02. Dubai Islamic Insurance and Reinsurance Co. closed nearly 5 per cent higher.

Shares of insurance firms such as Salama, Dar Al Takaful, Aman or Dubai Islamic Insurance and Reinsurance Company contributed to more than 25 per cent of the total turnover on Dubai bourse.

In other stocks, Amanat, which was the actively traded stock, closed 0.20 per cent lower at Dh0.975. The stock contributed to 14 per cent or 49 million shares to the total volumes of 338 million shares.

“The board announced an investment opportunity in Amanat a few days ago, and there is a lot of speculation about that,” Ahmad Waheed, Vice-President — Institutional Desk, Menacorp said.

“It’s a good fundamentally driven stock, which is also cash rich, unlike other high risk small stocks like GFH,” he added.

Dubai Entertainments closed 1.49 per cent lower at Dh1.32.

“The stock has been in downward trend, so its easy to find traders buying the name close to the IPO price,” Waheed said.

Dubai Entertainments is expected to extend gains towards the Dh1.45 first and later shall target Dh1.68 in the medium term.

Look to buy while placing stops below the neckline at AED1.25 level, said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securites.

Overall, the Dubai Financial Market General index closed 0.27 per cent lower at 3,542.16.

“It’s holiday time. A lot of institutional clients are on holiday, and they will wait for fresh triggers from fourth quarter results to make any decisions,” said Waheed.

The Abu Dhabi Securities Exchange General index closed 0.4 per cent higher at 4,469.08.

“Break over 4,480 is needed in ADX index to recover back to retest the trend line resistance at 4,589 and higher,” said Prakash.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index recovered 1 per cent on the back firm oil prices. The Tadawul index closed 1.15 per cent higher at 7,248.42. The Qatar exchange index closed 0.38 per cent lower at 10,304.77. The Kuwait Stock Exchange index closed 0.54 per cent higher at 5,745.04.

The focus will now be on fourth quarter results, and policy decisions from the US president-elect Donald Trump when he assumes office.

“The market is trading sideways. If you are an active trader, find the opportunities in small cap and trade with the market. If you are a long term trader, I would recommend to wait for a clear picture on how things might shape up in January,” Menacorp’s Waheed said.

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