Banks lead UAE market losses

Investors now worried about the results from rest of the sector, NBAD analyst says

Published: 19:58 October 26, 2015

By Siddesh Suresh Mayenkar, Staff Reporter

Dubai: The Abu Dhabi and Dubai stock indices fell more than 1 per cent on Monday amid falling oil prices, even as investors braced for lower-than-expected third quarter results.

The Dubai Financial Market General Index ended 1.27 per cent lower at 3,553.03.

Weak sentiment from Saudi Arabia on Sunday continued in trade on Monday. Lower-than-expected results from UAB soured sentiment in the banking space, according to Sanyalaksna Manibhandu, manager of research at the National Bank of Abu Dhabi Securities.

“We had bad numbers from Mashreq Bank among others, and investors are now worried about the results from rest of the banking sector,” said Manibhandu.

Dubai Islamic Bank ended 1.51 per cent lower at Dh6.51, while Emaar Properties ended 1.66 per cent lower at Dh6.50.

“At current levels traders should be waiting for the market to confirm support before attempting any new long positions in Emaar,” a Menacorp statement said.

Gulf Navigation ended 7.49 per cent lower at Dh0.494. Hits Telecom ended more than 2 per cent lower at Dh0.381.

Out of a total of 31 stocks traded on the exchange, the shares of 21 firms fell, while shares of three other firms rose.

The Abu Dhabi Securities Exchange General Index ended 1.31 per cent lower at 4,413.96.

“In the medium term the Abu Dhabi index has returned to a bearish mode after a failure to break above the 4,600 resistance level,” Menacorp said in a note to clients.

Aldar Properties closed more than 4.66 per cent lower at Dh2.25.

“The long-term trend is strongly bearish in Aldar Properties at the time being as marked by the fall below many daily strong support zones,” said Menacorp.

“On the Dubai index, short-term traders should have taken an exit of previous long positions at the entry-level trail and be waiting for any possible reaction from the 3,600 and 3,570,” said the Menacorp statement.

Volumes

Manibhandu said “volumes have picked up slightly, but they can be a lot better than this.”

On Monday, total volumes stood at Dh300 million on the Dubai bourse, slightly higher compared to previous weeks.

Saudi Arabia’s Tadawul TASI index closed 0.59 per cent lower at 7,319.15.

Saudi Basic Industries closed 1.66 per cent lower at 84 Saudi riyals, while Saudi Arabian Mining Co closed 3.82 per cent lower at 30.20 riyals.

Elsewhere in the Gulf, Qatar Exchange Index closed 0.67 per cent higher at 11,721.90, while Muscat Securities MSM 30 index closed 0.18 per cent higher at 5,932.95.

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