UAE indices end mixed as temporary recovery seen
Published: 18:08 February 15, 2016
Dubai: UAE indices ended mixed on Monday, with analysts expecting a temporary recovery.
The Dubai Financial Market General Index closed 0.25 per cent lower at 3,003.95, while the Abu Dhabi Securities exchange General index closed 0.79 per cent higher at 4,107.42.
“It was a mixed market. It wasn’t negative sentiment on Monday, investors are still worried about the oil prices,” Ahmad Waheed, Vice-President – Institutional Desk, Menacorp told Gulf News.
Oil prices were up on Monday after gaining more than 10 per cent on Friday after the UAE energy minister said the Organisation of the Petroleum Exporting Countries (Opec) was willing to cooperate on an output cut.
In stock-specific movement, Gulf Finance House closed 3.47 per cent higher at Dh0.567, while Emaar Properties closed 0.55 per cent higher at Dh5.48. Arabtec closed more than 3 per cent lower at Dh1.05.
Gulf Finance House may hit resistance level of Dh0.62 later in the month, said Osama Al Ashri, member of British organisation, Society of Technical Analysts, adding that Emaar Properties is still in downtrend on medium-term chart, and may hit resistance level of Dh5.69 later this month.
“Arabtec may witness further consolidation, but may enter a high risk area if it breaches support level of Dh0.93,” Al Ashri said.
Gulf Navigation may hit a new high to resistance level of 0.97, said Al Ashri.
Gulf Navigation closed 3.54 per cent higher at Dh0.848.
In Abu Dhabi, about 15 stocks of a total of 33 stocks ended in the positive teritorry. Aldar Properties closed 0.8 per cent lower at Dh2.36, while RAK Properties closed 1.75 per cent lower at Dh0.56. Dana Gas closed nearly 3.92 per cent lower at Dh0.49.
Aldar Properties may hit resistance level of Dh2.5 again, Al Ashri, adding Abu Dhabi Commercial Bank may go down again to support level of Dh5.8.
Eshraq properties may hit resistance level of Dh0.69, said Al Ashri.
Going ahead, Menacorp’s Waheed expects a rally in indices given the positive results from companies.
“There are two factors, if we have something globally, we could have lower numbers below 3,000 mark. But companies in the UAE have bene reporting better than expected results. We might see a good move upwards, if sentiment stays the same globally,” Waheed said.
Even technical analyst Al Ashri agreed on the direction in the market.
“Dubai index may recover and hit resistance level of 3,278 later in the month,” he said.
Abu Dhabi Securities Exchange general index may temporarily go up to resistance level of 4,191, said Al Ashri, adding “the risk will start if it breaches support level of 3,888.”
Elsewhere in the Gulf, Muscat securities MSM 30 index closed 0.29 per cent lower at 5,349.53, while Kuwait stock exchange index closed 0.16 per cent higher at 5,139.13.
The Bahrain all-share index closed 0.07 per cent higher at 1,166.85.
In Egypt, the stock index gained nearly 1 per cent as Asian stocks rallied. Beltone Financial soared 10 per cent for the third straight trading day. Commercial International Bank accepted billionaire Najeeb Sawiris’s bid to buy its investment arm CI Capital, market sources said on Sunday.
Sawiris’ Orascom Telecom plans to merge CI Capital with Beltone. Orascom rose 1.9 per cent on Monday