Arabtec regains traction on Dubai index, volumes inch higher
Published: 17:16 October 1, 2015
Dubai: Arabtec surged along with other Dubai stocks on Thursday on speculation of good third quarter numbers. The Abu Dhabi index also rose.
The Dubai Financial Market General Index ended 0.73 per cent higher at 3,619.44. Arabtec closed 4.89 per cent higher at Dh1.93, making it as the most active stock in trade.
“Arabtec was a big positive on Dubai markets, and generally people are looking forward to a better third quarter compared to the second,” Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.
Emaar Properties closed 1.39 per cent higher at Dh6.55, while Amlak Finance closed 0.49 per cent higher at Dh2.05. Dubai Islamic Bank closed 0.75 per cent higher at Dh6.75.
“Having in mind the given bearish characteristics, long term traders should remain neutral on Emaar with the aim to reposition near a strong support zone and only after clear bullish reversal signs,” MENCORP said in a statement to its clients.
Of 34 stocks traded, shares of 10 firms fell, while those of 20 others rose.
“Early on Thursday morning, investors reacted positively to the Chinese PMI numbers, that also helped the markets in the Middle East, so that made the new quarter start with a positive stance,” said Manibhandu.
China’s factory activity fell to a more-than-6-year low in September while growth in the once-resilient services sector came close to stalling, fuelling fears that the economy may be slowing more sharply than expected.
Investors would be closely looking at third quarter results to gauge the impact of falling oil prices on the mainstream economy.
“Between now and the third week of October, when the results get published, investors would be looking at global factors for leads,” Manibhandu added.
In Abu Dhabi, the general index closed 0.38 per cent higher at 4,519.96.
Rak Properties closed 3.28 per cent higher at Dh0.63, while Aldar Properties fell more than 1 per cent to end at Dh2.37.
“The trend is strongly bearish in Aldar. Long term bullish scenarios has been postponed for now and traders should be holding no long positions waiting for fatigue in this descend to materialise before considering any new position in this share,” said the MENACORP note.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.84 per cent lower at 7,341.94. Saudi Basic Industries closed 0.86 per cent lower at 78 Saudi riyals.
Qatar Exchange index closed 0.11 per cent lower at 11,453.13, while Muscat Securities MSM 30 index closed 0.06 per cent higher at 5,791.06.