Amid low volumes, UAE indices end mixed as Q3 results eyed
Published: 17:22 October 20, 2015
Dubai: Amid negligible volumes, UAE indices closed mixed as oil continued its fall below the keenly-watched $50 (Dh183.5) per barrel mark even as investors awaited for third quarter results for direction. The Dubai Financial Market General Index closed 0.59 per cent lower at 3,682.52, after trading in a tight range of 3,682.05-3,707.24.
“Any immediate move above 3,762 will activate medium term longs and initially target the 3,900 and in extension the 4,100 level,” said Menacorp in a statement.
Shares worth Dh170 million were traded on the exchange, compared to Dh1 billion a couple of months ago.
“Nothing is happening as people are waiting for results to come out. We saw some results come out in Saudi Arabia and Qatar, but in UAE the results are about to come out in big rush next week,” Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.
Companies like du, Emirates NBD, etisalat and Dubai Islamic Bank are due to announce their third quarter results next week. Investors would gauge the impact of falling oil prices on the performance of companies.
“So, depending on the results, people would be trying to cash in or buy more,” said Manibhandu.
Emaar Properties closed 1.30 per cent lower at Dh6.86, while Dubai Islamic Bank ended 0.73 per cent lower at Dh6.84.
“In the medium term, the market has activated a trend reversal signal on the
daily timeframe with a successful break above the Dh6.85 level in Emaar Properties, opening up the way for a further rally initially targeting Dh7.30,” the Menacorp note said.
Aramex closed 0.62 per cent lower at Dh3.19. Amlak Finance ended 0.50 per cent lower at Dh2. Out of a total of 32 stocks traded on the exchange, shares of 19 firms fell, while shares of other 5 firms rose.
Etisalat in MSCI index?
“Everybody is playing etisalat before the MSCI inclusion,” Manibhandu said.
Investors expect etisalat to get included in the MSCI emerging market index in its next review on November 12.
On Tuesday, shares of etisalat ended 1.95 per cent higher at Dh15.65. The broader Abu Dhabi index closed 0.16 per cent higher at 4,584.86.
“In the medium term the market has shown bullish intentions with the recent break above 4,570,” Menacorp said in a client note.
Aldar Properties closed 1.27 per cent lower at Dh2.47, while First Gulf Bank closed steady at Dh13.90.
Out of a total of 19 stocks traded on the exchange, shares of 13 firms fell, while shares of other 9 firms rose.
Saudi Arabia’s Tadawul index closed nearly 1 per cent lower at 7,689.76. Elsewhere in the Gulf, Qatar Stock Exchange index closed 0.28 per cent lower at 11,755.67, while Kuwait Stock Exchange index closed 0.36 per cent higher at 5,804.92.