DFM-traded volumes hit over 4-month high as key resistance breached
Published: 17:06 July 13, 2016
Dubai: Traded volumes on Dubai index jumped to its highest level in nearly four months as risk-prone institutional and retail participants resorted to buying select stocks as the gauge breached a key trend reversal point.
“We believe that foreigners contributed to the recent upsurge. However, breaking important technical barriers enticed local traders to jump in,” Talal Touqan, Head of Research and Advisory at Al Ramz Capital, said over an email.
Traded volumes on the Dubai Financial Market (DFM) General index jumped to Dh687 million on Wednesday, the highest level since on March 22. This compares with Dh494 million of traded value on Tuesday. The (DFM) General index continued its gaining streak for a seventh straight session, ending 1.35 per cent higher at 3,483.94.
Gulf Finance House (GFH) closed more than 2 per cent higher at Dh0.881, and was the most-active stock in trade. GFH contributed to 25 per cent of the total trade. Emaar Properties closed 6.69 per cent higher at Dh1.36. Dubai Islamic Bank ended more than 3 per cent higher at Dh5.56. Dubai Investments closed 2 per cent higher at Dh2.16.
Abu Dhabi Securities Exchange General Index closed 0.14 per cent higher at 4,548.97. Etisalat ended 0.45 per cent higher at Dh19.45. First Gulf Bank closed 0.25 per cent lower at Dh12.25.
Elsewhere in the Gulf, Qatar exchange index closed 1.76 per cent higher at 10,319.74, while Saudi Arabia’s Tadawul index was 0.93 per cent higher at 6,687.15.
“I believe that UAE stocks are prone to short-term profit taking, but UAE equity markets remain in a good shape for the medium term,” said Touqan of Al Ramz Capital. The index has gained more than 6 per cent in the past seven sessions.
Traders would also eye the second quarter results from companies, which is expected to remain muted given the headwinds.
“We are following global leads, and buying is not relating to second quarter results. The second quarter is not expected to be great anyway. It is going to be a continuation of earlier quarters,” Hisham Khairy, Head of Institutional Trading, Menacorp told Gulf News.