Amid low volumes, Abu Dhabi, Dubai indexes consolidate
Published: 17:40 November 25, 2015
Dubai: Despite falling oil prices, the Dubai index edged higher on Wednesday, trading above the keenly-watched 3,000 level on Wednesday with very low volumes.
Oil, which forms the main source of revenue for the Gulf countries, retreated from a two-week high in New York on speculation this week’s rally wasn’t justified as global markets remain oversupplied.
The Dubai Financial Market General Index closed 0.17 per cent higher at 3,214.52, after trading in a tight range of 3,170.23-3,215.29.
“The medium term continues in a downtrend for the Dubai index, having breached through the August low of 3,240, outlined as the last medium term support before the 52 week low at 3,000,” MENACORP said in a statement.
Arabtec ended 2.70 per cent higher at Dh1.14, while Amlak shares ended 2.88 per cent higher at Dh1.43.
Emaar Properties closed steady at Dh5.95.
“The short term has found resistance below 6.24 and signalling towards a shift in momentum to bearish directing the market to a retest of 5.80,” MENACORP note added.
Drake and Scull ended 2.59 per cent higher at Dh0.435. Dubai Islamic Bank ended 1.31 per cent higher at Dh6.20.
Shares worth Dh197 million were traded on the bourse as against more than Dh1 billion a few months ago.
“People are still waiting thinking about what to do. We can see volumes were light and still there is no conviction in the market, something that I expect to continue going into next week,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.
Out of a total of 31 stocks traded on the exchange, shares of 13 firms fell, while 12 others rose.
“We would see a higher level of enthusiasm by mid-December when people start to look at dividend trade,” said Manibhandu.
People would look at telecom firms, and other property firms like Damac Properties likely to pay dividends, analysts said.
The Abu Dhabi Securities Exchange General Index closed 0.29 per cent higher at 4,230.72. Aldar Properties closed more than 6 per cent higher at Dh2.42, while Etisalat ended more than a per cent lower at Dh15.45. National Bank of Abu Dhabi ended almost steady at Dh8.75. Out of a total of 25 stocks traded on the exchange, shares of 14 firms rose, while other 6 firms fell.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul closed 0.09 per cent higher at 7,208.36. the Bahrain All Share index closed 0.07 per cent higher at 1,231.36.
Qatar to test 10,000 level
According to analysts, the Qatar index is likely to target 10,000 levels in coming weeks and months, according to MENACORP.
“Qatar index tested its 10,500 support and saw some buying activity, volumes are falling on a daily basis, nothing really interesting happing in this market and looks like more weakness is on the way, 10,300 continues to be the next target and then the 10,000,” Hisham Khairy, head of institutional trading at MENACORP said.
On Wednesday, Qatar Exchange index closed 0.95 per cent lower at 10,511.50, after trading in the range of 10,495.10-10,611.37.