Dubai stocks extend rally to hit November high as Arabtec zooms

The index hit a high of 3,241.28, a level last seen in November

Published: 19:57 February 29, 2016

Siddesh Suresh Mayenkar, Staff Reporter

Dubai: The UAE stocks gained on Monday, extending its rally for another session as traders bought in specific stocks along with Arabtec.

The Dubai Financial Market General index closed 1.99 per cent higher at 3,239.70, after gaining more than a per cent on Sunday. The index hit a high of 3,241.28, a level last seen in November.

“While other markets were soft, but our markets saw continued buying,” said Mohammad Shabbir, head of equity funds and portfolios at Rasmala.

Arabtec ended limit up, closing nearly 15 per cent higher at Dh1.44, after news that its ex-chief executive officer had raised stake to 11.91 per cent on Monday from the earlier 11.81 per cent.

Amlak Finance closed more than 12 per cent higher at Dh1.59, while Emaar Properties closed 2.63 per cent higher at Dh2.63.

Having in mind the given bearish characteristics, long term traders in Emaar Properties should remain neutral at current times with the aim to reposition only after stronger trending characteristics appear on long term charts. The break below previous medium term support at Dh5.70 has shown further weakness in the share and points towards a downwards continuation, Menacorp said in a note to its clients.

Damac Properties closed 2.64 per cent higher at Dh2.72. Shares of Dubai Financial Market closed 7 per cent higher at Dh1.38. Out of a total of 36 stocks traded on the exchange, shares 20 firms rose, while other 14 fell.

“February was a very good month, now most of the stocks have recovered, but not all of them. Discount, which was visible after the drop, has more or less disappeared,” Shabbir said, adding “the market would be looking at international leads for direction.”

The Dubai index, which was the worst performing stock last month, recovered nearly 3 per cent in February.

On Monday, the Abu Dhabi Securities Exchange general index closed 1.77 per cent higher at 4,351.41. However, Menacorp had a bearish view on Abu Dhabi index.

“Long and medium term traders should remain outside of the market while bearish scenarios continue to develop. In the medium term the market remains in a

downtrend, with bearish momentum expected to return as long as the correction remains below previous daily top at 4,320. Having achieved first target of the bearish daily swing at 3800, an extended move is expected to continue towards second target, outlined at 3,450,” Menacorp said in a statement sent to its clients.

Eshraq Properties closed more than 5 per cent higher at Dh0.77. Rak Properties closed more than 3 per cent lower at Dh0.61. Dana Gas closed 2 per cent higher at Dh0.51. Aldar Properties also close more than 2 per cent higher at Dh2.50. “The long term trend is strongly bearish at the time being as marked by the fall below many daily strong support zones. Long term Bullish scenarios have been

postponed for now and traders should be waiting for reversal patterns in this descend before considering new positions in this share,” Menacorp note added.

Out of a total of 34 stocks traded on the exchange, shares of 17 firms rose, while other 13 fell.

Elsewhere in the Gulf, Qatar exchange index closed 0.36 per cent lower at 9,892.32, while Muscat Exchange index closed 0.21 per cent higher at 5,395.11.

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