UAE indices recover but trend still bearish

DFM index may even fall below the keenly-watched 3,000 levels, analysts say

Published: 20:03 November 17, 2015

By Siddesh Suresh Mayenkar, Staff Reporter

Dubai: UAE indices recovered on Tuesday after a near 4 per cent fall on Sunday on bargain buying in blue chips like Emaar Properties.

The Dubai Financial Market General Index closed 0.49 per cent higher at 3,189.73, after rising as much as 3,236.93.

“It’s a technical rebound after a few days of fall and trading was mainly driven by retail mainly speculating on stocks like Arabtec and Amlak, which were heavily sold off in the recent sell off,” Hisham Khairy, Head of Institutional Trading at Menacorp, UAE’s largest brokerage firm.

Emaar Properties closed 1.54 per cent higher at Dh5.94. Arabtec closed 1.72 per cent lower at Dh1.14.

Amlak Finance ended more than 1 per cent lower at Dh1.43. DAMAC Properties closed 0.80 per cent higher at Dh2.52.

Out of a total of 34 stocks traded on the exchange, shares of 21 firms rose, while other 11 fell.

Downtrend

“The downtrend would continue, and foreign institutions have been recommending selling the market and they expect a break below 3,000 levels,” Khairy said.

Khairy also agreed with that analysis and expect oil to trade below the keenly-watched $40 per barrel mark.

On Tuesday, oil prices eased, reversing the previous day’s gains, as the risk premium stemming from the Paris attacks faded, and the focus returned to the global oversupply in crude and petroleum products. Front-month US crude futures were down 34 cents at $41.40 a barrel. Front-month U.S. crude futures were down 34 cents at $41.40 a barrel, after nearing the keenly-watched $40 mark.

Abu Dhabi Securities Exchange General Index bucking the regional trend, ended more than a per cent higher. The ADX general index closed 1.48 per cent higher at 4,197.10.

Etisalat shares ended 0.4 per cent higher at Dh15.90, while Aldar Properties ended steady at Dh2.27.

Out of a total of 32 stocks traded on the exchange, shares of 16 firms rose, while other 6 firms declined.

Emaar Malls and Group ended 3.16 per cent lower at Dh2.76. Shares in Drake & Scull rose 4.1 per cent, recovering from Monday’s record low, after reporting a third-quarter profit slump.

Elsewhere in the Gulf, Saudi’s Tadawul index closed 0.62 per cent lower at 6,916.77 after a legislative body endorsed a tax on undeveloped land.

Qatar Exchange index closed 0.07 per cent lower at 10,820, while Muscat Securities MSM 30 index closed 0.36 per cent lower at 5,814.35. Kuwait Stock Exchange index closed 0.06 per cent lower at 5,699.78.In the Middle East, Egyptian EGX 30 price index closed 1.13 per cent lower at 6,407.33.

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