Rally continues in UAE stocks as oil nears $40

Qatar index registers upturn but Saudi bourse posts marginal decline

Published: 19:26 March 7, 2016

Siddesh Suresh Mayenkar, Senior Reporter

Dubai: Dubai and Abu Dhabi stocks rose on Monday, extending gains for another session as stability in crude oil prices triggered a risk on sentiment.

The Dubai Financial Market General Index closed 1.09 per cent higher at 3,380.55, after gaining close to 3 per cent in the previous session.

“Active traders are making profit, which feeds a virtuous circle of increasing confidence leading to more cash being allocated to active trading strategies,” Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities told Gulf News.

In stock specific action, Union Properties closed nearly 15 per cent higher at Dh0.912, while Deyaar Properties closed more than 6 per cent higher at Dh 0.620. Emaar Properties closed half a per cent higher at Dh 5.96.

“Having in mind the given bearish characteristics in Emaar Properties, long term traders should remain neutral at current times with the aim to reposition only after stronger trending characteristics appear on long term charts. The break below previous medium term support at 5.70 has shown further weakness in the share and points towards a downwards continuation,” Menacorp said in a note to its clients.

Drake and Scull (DSI) closed nearly 2 per cent higher at Dh 0.484.

“DSI remains strongly bearish in the long term after the market managed to reach new all time lows. The break below 0.60 has activated a bearish reversal and cancelled any immediate bullish scenarios in the medium term. However in the short term the share has returned for a retest of previous lows,” Menacosp said.

Arabtec closed more than 6 per cent lower at Dh 1.71, while Gulf Finance House closed 2.56 per cent lower at Dh 0.800. Out of a total of 35 stocks traded on the exchange, shares of 18 firms rose, while 14 fell. The other 3 remained steady.

Trading pattern

“In the short term, to the end of the week, the active trading pattern may persist. Equity trading in the region is also being supported by crude prices firming,” Manibhandu added.

“Any downward pressure in the price of crude and negative external news will get traders to take profit at short notice and adversely impact index levels,” Manibhandu added.

In Abu Dhabi, the general index closed a tad higher. The Abu Dhabi Securities Exchange General Index closed 0.22 per cent higher at 4,566.39.

“Long and medium term traders should remain outside of the market. In the medium term the market remains in a downtrend, with bearish momentum expected to return before confirming the strength of the correction to postpone any further decline,” Menacorp note said on ADX general index.

Eshraq Properties closed more than 1 per cent higher at Dh 0.79, while Dana Gas closed 1.89 per cent higher at Dh 0.54. RAK Properties closed more than 1.5 per cent higher at Dh0.64.

Aldar Properties closed about half a per cent higher at Dh 2.60. Commercial Bank International closed more than 10 per cent higher at Dh2.05 . Out of a total of 36 stocks traded on the exchange, shares of 20 firms rose, while other 12 fell.

Elsewhere in the Gulf, Muscat Securities MSM 30 index closed 0.19 per cent lower at 5,396.36, while Kuwait Stock exchange index closed 0.30 per cent lower at 5,264.71.

The Bahrain stock exchange index closed 0.23 per cent lower at 1,172.34.

Saudi Arabia’s Tadawul index ended a tad lower in trade.

“Saudi and Qatar stocks still lag UAE stocks. There is still room for Saudi and Qatar stocks to catch up and outperform UAE stocks on a month’s view,” Manibhandu said.

Saudi Arabia’s Tasi index closed 0.14 per cent lower at 6,387.44. The Saudi index is still down down more than 30 per cent in year to date, compared to a 3 per cent rise in Dubai index.

Qatar exchange index rose 2.29 per cent to 10,268.65.

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