Outlook remains bearish for UAE, Saudi indices

The Dubai Financial Market General Index closed 1.13 per cent higher at 3,689.55, recording volumes of around Dh900 million

Published: 19:07 August 30, 2015

By Siddesh Suresh Mayenkar, Staff Reporter

Dubai:

Analysts painted a negative outlook going forward for the UAE and Saudi indices even as they gained nearly 5 per cent in trade on Sunday.

“Things don’t really look great as volatility is on the rise, global markets are in correction phase and oil is expected to continue its move

lower so would recommend booking profits with any rally,” said Hisham Khairy, Head of Institutional Trading at MENACORP.

The Dubai Financial Market General Index closed 1.13 per cent higher at 3,689.55, recording volumes of around Dh900 million. DAMAC Properties closed 7.01 per cent higher at Dh3.36, while Amlak Finance closed 1.40 per cent higher at Dh2.18.

“Gulf Finance House may hit a new high of Dh0.69,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts, adding Dubai Investments may hit a new low Dh2.37.

Gulf Finance House closed 5.11 per cent higher at Dh0.597, while Emaar Properties closed 2.76 per cent higher at Dh6.70.

Emaar Properties may hit a new low to be at support level of Dh6.47.

Arabtec may go down again, as uptrend has been breached, Al Ashri said.

Out of a total stocks, about 23 firms rose, while another 10 fell.

New low:

“I see new low for UAE indices. We see a new low if Dubai index breaches support level of 3,389,” said Al Ashri, adding “Abu Dhabi index may hit support level of 4,378 later in the week.”

Abu Dhabi Securities Exchange General Index closed reversed early gains to end 0.17 per cent lower at 4,453.62.

First Gulf Bank may hit a new low at Dh11.75 later this week, said Al Ashri. Dana Gas closed 3.85 per cent higher at Dh0.54. Out of a total of 30 stocks traded on the exchange, shares of 11 firms rose, while shares of other 9 firms fell.

“I have very negative outlook for Tadawul index, which may hit 5,900 in a few weeks,” said Al Ashri.

Saudi’s Tadawul index closed 1.13 per cent higher at 7,690.4, after rising as much as 7,953.43.

Saudi Basic Industries closed 3.96 per cent higher at 83 Saudi Riyals, while Dar Alarkan Real Estate Development closed 1.43 per cent higher at 6.40 Saudi Riyals.

Alinma Bank closed more than 3 per cent higher at 19.03 Saudi Riyals.

Elsewhere in the Gulf, Qatar Exchange index closed 0.39 per cent higher at 11,339.50, while Kuwait Stock Exchange index closed 0.47 per cent higher at 5,904.12. Bahrain bourse index closed 0.09 per cent lower at 1,301.07.

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