Big cap property results comes to rescue of Dubai index

Banks gain momentum even as Arabtec below Dh1 refrains sellers

Published: 17:24 February 15, 2017

Siddesh Suresh Mayenkar, Senior Reporter

Dubai:

Strong results from Emaar Properties, Damac and Aldar came to the rescue of Dubai index on Wednesday.

The Dubai index reversed early recovery triggered better than expected results from Emaar Properties, by closing almost flat as traders resorted to profit-taking later.

The Dubai Financial Market rose as much as 3,671.92, before closing 0.21 per cent lower at 3,645.

“We are seeing some sort of stabilisation on Dubai index. We have seen results from Emaar, Aldar, and Damac that came in line if not better, so that gave people to a reason to re-assess risk. The risk that they saw on the day when Arabtec came out with results,” said Sanyalaksna Manibhandu, director Research, National Bank of Abu Dhabi Securities.

Emaar Properties closed 0.26 per cent higher at Dh7.62, while Dubai Financial Market shares rose more than 4 per cent to be at Dh1.54.

“Although the long term outlook remains bullish in Emaar Properties, the recent weekly top formation right below the key level at Dh8 has weakened the current structure, prompting an early exit from the recently activated longs,” Menacorp said in a technical note.

Gulf Finance House closed 0.36 per cent higher at Dh2.76.

Among the losers, Arabtec closed 5.56 per cent lower at Dh1.02, after hitting lower circuits in the previous two sessions.

Arabtec witnessed buying at sub Dh1, a level which refrained sellers.

“Bearish pressures below Dh1.15 in Arabtec have signalled a further decline and are warinig of a retest of the Dh1 level. Therefore pushing traders of both the medium and short term to stay neutral for the meantime,” Menacorp added.

Banks along with DFM shares witnessed buying. Emirates NBD rose nearly 2 per cent to close at Dh8.85. DFM rose more than 4 per cent to end at Dh1.54. Salam Bahrain closed more than 2 per cent at Dh1.17. Tabreed closed more than 3 per cent to end at Dh1.93.

Out of a total of 35 stocks traded on the exchange, shares of 16 firms fell, while other 17 rose. The rest remained steady.

The Abu Dhabi Securities Exchange general index closed 0.53 per cent higher at 4,596.69. First Gulf Bank closed 2.26 per cent higher at Dh13.60, while National Bank of Abu Dhabi closed 2.48 per cent higher at Dh10.35. Union National Bank closed 1.75 per cent lower at Dh4.5. Aldar Properties closed 2.73 per cent lower at Dh2.49.

Out of a total of 25 companies, shares of 12 firms rose, while other 11 fell. The rest remained steady.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul closed 0.58 per cent higher at 7,073.69. The Qatar exchange index closed 0.57 per cent higher at 10,731.53.