GFH shares hit 2-year high as select buying seen on Dubai bourse

Saudi stocks ride high, more gains expected

Published: 17:21 October 30, 2016

Siddesh Suresh Mayenkar, Senior Reporter

Dubai: Gulf Finance House hit a two-year high again in Dubai, even as select buying was seen in UAE stocks.

GFH closed at the day’s high of Dh1.24, a level last seen in September 2014. GFH was the most active stock in trade contributing to 24 per cent of the total volumes.

“There is no news on the name [GFH]. It has been the best performing stock in the UAE,” Hesham Khairy, Head of Institutional Trading, Menacorp said.

GFH has gained more than 144 per cent in the past one year, against the 1.28 per cent loss on the Dubai Financial Market General Index.

Select buying was seen in other stocks like Gulf Navigation and Arabtec.

Gulf Navigation closed 0.03 per cent higher at Dh1.17. Arabtec, which has been an underperformer, recovered from a Brexit low of Dh1.28. The stock finally closed at Dh1.38, up 3.88 per cent.

Shuaa Capital also closed 0.89 per cent higher at Dh1.13.

Dubai Entertainments closed more than 1 per cent lower at Dh1.58 ahead of a phased opening on Monday.

Out of a total of 32 stocks traded on the exchange, shares of 14 firms fell, while another 12 rose. The rest remained steady.

The Dubai Financial Market General Index 0.08 per cent closed lower at 3,320.92.

The Abu Dhabi Securities Exchange General Index closed 0.14 per cent lower at 4,286.34.

“We need to wait and see how investors are looking at the name, so far the numbers have been bad from the banks, we have not seen so far on real estate,” said Khairy.

Marginal volumes were seen in FGB, and National Bank of Abu Dhabi. FGB closed 0.89 per cent higher at Dh11.30.

NBAD closed 0.85 per cent higher at Dh8.65.

Out of a total of 32 stocks traded on the exchange, shares of 14 firms rose, while other 5 fell. The rest remained steady.

Bullish

Analysts said a double bottom has been formed in Saudi’s Tadawul index, indicating bullishness. Saudi’s Tadawul index closed 0.70 per cent to be at 5,977.98, after hitting a high of 5,995.29 riding high on easing liquidity crisis and a strong response to the bond issue.

Saudi Tadawul which has been in a downtrend since April this year, reached out target around the 5,325 after breaking the 6,575 support back in May.

Last week the index tested the resistance of 5,750, but fell back to the recent low around the 5,325 and had a double bottom formation which was confirmed with the break of the 5,755 on Thursday’s session.

“The break took place on higher volumes which is a positive sign, RSI and MACD are both positive pointing to further gains, would be a buyer of the market to target the 5,950/6,250 which would give us a profit of around 10 per cent if a second target is reached,” Khairy added.

On sector level, indices displayed a mixed trend, with banks, financials and retail on the gaining side, while petrochemicals were on the losing side.

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