Late selling triggers reversal in Dubai index
Published: 16:46 September 21, 2016
Dubai: Dubai index reversed early gains in late trade on Wednesday due to late selling seen in select stocks.
Emaar Properties, Dubai Islamic Bank and Dubai Investments, Dubai Parks and Resorts witnessed some selling activity in late final 15 minutes of trade, pulling the index lower. The Dubai Financial Market General Index closed 0.26 per cent lower at 4,461.08, after falling from a high of 4,475.93.
“Small caps have been active, and everyday is the new one, while rest of the market is flat,” said Hisham Khairy, Head of Institutional Trading, MENACORP.
Earlier in the day, traders were seen accumulating defensive names such as Tabreed, which has been an outperformer. About 21.57 million shares were traded in Tabreed on Wednesday, its highest since January 16. The stock, which hit a high of Dh1.71 on Wednesday, was the most actively traded name on the bourse. Tabreed closed 6.45 per cent higher at Dh1.65. It has gained 80 per cent since January 26, compared to 32 per cent gains on Dubai index.
Shuaa, and Gulf Finance House, which have been a top performer, also ended in positive zone. Shuaa Capital closed 3.75 per cent higher at Dh0.914.
Shuaa Capital has gained 200 per cent from its low since January 26, and GFH has gained 159 per cent since the same day. Among other stocks, Emaar Properties closed 1.28 per cent lower at Dh6.96. Dubai Parks and Resorts closed more than 1.5 per cent lower at Dh1.61. Dubai Islamic Bank closed less than a per cent lower at Dh5.29. Out of a total of 37 stocks traded on the exchange, shares of 17 firms fell, while another 16 rose. The rest remained steady.
The Abu Dhabi Securities Exchange index closed 0.15 per cent lower at 4,470.40. Agthia closed more than 4 per cent higher at Dh5.95, while FGB closed more than 1 per cent to be at Dh11.95. Aldar Properties closed 0.26 per cent higher at Dh2.64. Out of a total of 25 stocks traded on the exchange, shares of 11 firms fell, while another 7 rose, The rest remained steady.
Elsewhere in the Gulf, the Tadawul index closed 0.40 per cent higher at 5,948.92, Most of the support was provided by petrochemicals. Saudi Basic Industries closed 1.01 per cent higher at 83.75 Saudi riyals.
Qatar exchange index closed 0.04 per cent lower at 10,252.90. Kuwait Stock Exchange index closed 0.13 per cent lower at 5,390.79.
“We are in wait-and-see mode. Traders are waiting for the indications from the US Federal Reserve,” Khairy said. Traders limited their bets ahead of the announcement of US Federal Reserve, and traders would be looking at indications of the next rate hike.