Dubai index rallies even as blue chips reach resistance
Published: 16:36 July 18, 2016
Dubai: The Dubai index continued its gaining streak on Monday as traders continued to buy select blue chips even as they reached key resistance levels.
The Qatar index led regional gains.
The Dubai Financial Market General Index closed 1.35 per cent higher at 3,535.20, after gaining for eight from nine sessions. The index has gained 8 per cent in the past three weeks or so.
“The market is on a strong footing today. There is nothing to stop the market at the moment. We are approaching new resistance now around 3,600. We would continue going higher. However 4,000 won’t be easy,” Hisham Khairy, Head of Institutional Trading, Menacorp told Gulf News.
Dubai Islamic Bank closed more than 1.5 per cent higher at Dh5.50, while Emaar Properties ended more than 2 per cent higher at Dh6.85. Arabtec took a breather in trade ending steady at Dh1.57. Union Properties closed 1.98 per cent higher at Dh0.771. Amlak Finance ended higher 1.34 per cent higher at Dh1.51.
Emirates NBD shares barely moved despite posting strong results. Emirates NBD closed flat at Dh8.50.
“So far the numbers are good. Emirates came out strong, but that failed to fuel any buying in the stock or the banking sector,” Khairy said.
Out of a total of 36 stocks traded on the exchange, shares of 27 firms rose, while other seven fell.
“The blue chip names are approaching resistance level. Some of the blue chips are already seeing selling pressure like First Gulf Bank and National Bank of Abu Dhabi. We may take a breather in coming weeks, before continuing the rally,” Khairy said.
Most of the insurance firms participated in the rally, which normally is the last sector to rise before markets take a turn, Khairy said.
Methaq Takaful Insurance Co. closed 0.12 per cent higher at Dh0.12, while First Gulf Bank closed 0.20 per cent lower at Dh12.30.
“FGB is under some selling pressure along with NBAD. They are taking a breather. We are waiting for the rest of the numbers,” Khairy said. Etisalat ended almost flat at Dh20.00. The Abu Dhabi Securities Exchange general index closed 0.77 per cent lower at 4,562.04. Out of a total of 25 firms, shares of 11 companies rose, while seven others fell. The rest remained steady.
Qatar leads regional gains:
Elsewhere in the Gulf, the Qatar exchange index closed 1.60 per cent higher at 10,585.08, leading regional gains. Saudi Arabia’s Tadawul index closed 0.13 per cent lower at 6,671.63.
Muscat Securities’ MSM 30 index closed 0.48 per cent lower at 5,843.77.
The Bahrain bourse’s all-share index closed 0.08 per cent lower at 1,164.03. The Kuwait Stock Exchange index closed 0.17 per cent lower at 5,380.45.