Ignoring oil rebound, Dubai stock traders resort to profit-taking

The Dubai Financial Market General Index closed 0.73% lower at 3,327.13

By Siddesh Suresh Mayenkar Senior Reporter

Dubai

Ignoring a rebound in oil prices, traders in Dubai stocks resorted to profit-taking ahead of Ramadan as the index struggled to reclaim the recent resistance level.

The Dubai Financial Market General Index closed 0.73 per cent lower at 3,327.13, after the index recently failed to breach the key resistance of 3,400.

“We still see the market in the red on its way to the 3,300 but we don’t see much impact from the Opec meeting with the results of the meeting already priced in the oil,” Ahmed Waheed, Vice President Institutional Desk at Menacorp.Shiv Prakash from National Bank of Abu Dhabi also expects downside.

“The index breached the support at 3,340 may trigger another drop towards the next critical support level at 3,200,” Shiv Prakash, senior analyst with National Bank of Abu Dhabi said in a note.In stock specific action, Emaar Properties closed at Dh7.24, down 0.41 per cent. The blue chip was the actively traded stock, contributing to 13 per cent of the traded value.

Dubai Investments closed 1.44 per cent lower at Dh2.06. “DIC failed to hold higher above Dh2.08 support, and the stock may slide towards the Dh2.00/1.92 in the short term. Only a break over Dh2.16 shall be considered bullish,” Prakash said. Arabtec closed 3.33 per cent lower at Dh0.725.

Union Properties closed 3 per cent lower at Dh0.90. Dubai Financial Market shares closed 0.94 per cent at Dh1.07.

Out of a total of 35 stocks traded on the bourse, shares of 27 firms fell while other 5 rose.

The Abu Dhabi Securities Exchange general index closed 0.34 per cent lower at 4,516.84. Commercial Bank International closed 9.52 per cent at Dh1.52. Manazel closed 7.14 per cent lower at Dh0.52. Bank of Sharjah closed 5.51 per cent lower at Dh1.20. Dana Gas closed 4.65 per cent lower at Dh0.41. Invest Bank closed 4.17 per cent lower at Dh2.30. Elsewhere in the Gulf, the Tadawul index closed lower as energy and material shares weighed. The Tadawul index closed 0.43 per cent lower at 6,871.72.

Alinma closed 2 per cent lower at 14.20 Saudi riyals. Saudi Kayan Petrochemical Co. closed 1.9 per cent lower at 8.25 riyals. The parallel market or Nomu index closed at 4,094.79, down more than a per cent.

The Qatar exchange index closed 0.27 per cent lower at 10,060.52. The Muscat MSM 30 index closed at 5,403.14, up 0.20 per cent.

The Bahrain all share index closed 0.02 per cent higher at 1,314.22. In the wider Middle East, the Egyptian index closed 1.63 per cent higher at 13,094.42.

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