Firm crude prices help Dubai index snap two-day losing streak
Positive sentiment seen continuing as DFM jumps more than 1% but Abu Dhabi index closes 0.05% lower
Dubai: The Dubai index snapped a two-day losing streak on Sunday, jumping more than 1 per cent on the back of firm crude oil prices. The Abu Dhabi index, however, ended a tad lower.
Brent crude rose 2.3 per cent on Friday and posted a 5.3 per cent weekly gain on lowered expectations that an agreement on Iran’s nuclear programme would result in a rapid return of more Iranian oil to the market.
The Dubai Financial Market General Index ended 3,805.41, up more than 1.3 per cent in trade, after losing 0.6 per cent in the previous two sessions.
“We are facing some resistance at the 3,800 levels on the DFM, and we [don’t] see any profit-taking at the end of the session, so we are going to continue the positive sentiment for rest of the week,” said Hesham Khairy, head of institutional trading at brokerage Menacorp.
Arabtec ended 5.49 per cent higher at Dh2.69, while Emaar Properties closed 2.1 per cent higher at Dh7.30. Dubai Investments ended 1.43 per cent higher at Dh2.83.
Out of a total of 33 stocks traded on the DFM, shares of 22 companies rose, while shares of 7 companies fell.
Analysts expect volumes to pick up in coming sessions after recording a total of Dh500 million.
“Volumes should pick-up tomorrow and we should see a clear break of resistance levels,” Khairy said.
The Abu Dhabi index ended 4,560.44, down 0.05 per cent on day.
“On the Abu Dhabi index, the real estate sector was strong, though the past week has been mainly about foreign inflows in banks,” Khairy said.
Out of a total of 27 stocks traded on the exchange, the shares of 10 companies rose, while those of 11 fell.
“We are heading to test the next level of 4,000, and the reason why it will go up is that there is no negative news — be it on [the] oil front or from Saudi Arabia,” Khairy said. “[The] Saudi market is up and oil is stable, which should push Dubai markets higher.”
Saudi Arabia’s Tadawul index was 0.76 per cent higher at 9,018.07. Bahri was 5.05 per cent higher at 47.8 Saudi riyals. Saudi Basic Industries was 1.98 per cent higher at 87.75 riyals.
National Commercial Bank, Saudi Arabia’s biggest lender, jumped 2 per cent after several other Gulf lenders such as Banque Saudi Fransi and Qatar National Bank reported strong growth in first-quarter earnings.
Elsewhere in the Gulf, the Qatar Stock Exchange ended 0.04 per cent lower at 11,982.65, while the Muscat Securities MSM 30 Index closed 0.07 per cent lower at 6,265. The Kuwait Stock Exchange Index closed 0.12 per cent higher at 6,285.21 while the Bahrain Bourse All Share Index ended 0.08 per cent higher at 1,440.64.