Dubai index sheds early gains on profit-taking

The Dubai Financial Market General Index ended 0.25 per cent higher at 4,133.14, after rising as much as 4,191.02

Published: 18:34 April 22, 2015

By Siddesh Suresh Mayenkar, Staff Reporter

Dubai: Dubai index shed early gains on Wednesday as traders booked profits in property majors. Saudi index see-sawed in trade to end in negative.

The Dubai Financial Market General Index ended 0.25 per cent higher at 4,133.14, after rising as much as 4,191.02.

“Speculators have been dumping since the past couple of days. and it opened gap up Wednesday but couldn’t sustain the move due to profit-taking. The index is unable to sustain the 4,200 mark,” said Hisham Khairy, head of institutional trading, MENACORP.

Dubai index has been trading in the range of 4,000-4,200 in the past couple of sessions, and analysts expect further consolidation.

“We don’t have news to react to. We have already reacted positively to the strong earnings, along with news of opening up of Saudi markets,” Khairy said.

Damac Properties ended 0.32 per cent higher at Dh3.11 after rising as much as Dh3.25 after the company said it would pay at least two dividends for 2015.

The company would pay a half-year payout worth 10 per cent of capital followed by a final 15 per cent payout for the second half of the year. It plans to pay at least 25 per cent in dividends in 2016 as well.

Dip below 4,000 mark?

“Dubai index may test the 4,000 levels in coming days or weeks or we might even dip below it. But I don’t think we will breach 4,200 easily,” Khairy said.

“It would be day traders and speculators that would trade in counters like Union Properties and other stocks. The speculators would trade the market in small cap stocks now and I don’t think they would be able to break the 4,200 mark,” Khairy said.

Union Properties ended 3.45 per cent higher at Dh1.50, while Arabtec ended 1.67 per cent lower at Dh2.95. Out of a total of 32 stocks traded on the exchange, shares of 16 companies fell, while shares of 11 companies rose.

Abu Dhabi index

Abu Dhabi index ended 0.57 per cent higher at 4,705.90.

“There hasn’t been any switch of liquidity from Dubai to Abu Dhabi. I thought that when Dubai was up sharply, investors would shift liquidity in Abu Dhabi but that hasn’t happened,” Khairy said.

Adlar Properties ended 1.04 per cent at Dh2.86, while First Gulf Bank ended more than 2 per cent higher at Dh15.75.

Saudi’s Tadawul All Share TASI index ended 0.14 per cent higher at

9,572.27 after the government decided to end the air strikes on Yemen. Saudi Basic Industries ended 0.93 per cent higher at 96.5 Saudi Riyals, while ZAIN ended 4.81 per cent higher at 12.2 Saudi Riyals.

Elsewhere in the Gulf, Qatar Exchange Index ended 0.13 per cent higher at 11,992.61, while Muscat Securities MSM 30 index ended 0.33 per cent higher at 6,350.79.

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