UAE indices slip following global peers, but seen ranged
Published: 18:37 February 9, 2016
Dubai: UAE indices slipped on Tuesday following weak sentiments from its global peers, despite a recovery in oil prices.
The Dubai Financial Market General index closed 0.97 per cent lower at 3,064.71, after moving in a tight range of 3,021.89-3,093.12.
“The negative sentiment is due to weakness in the international markets,” Muhammad Shabbir, head of equity funds & portfolios at Rasmala. A drop in bank shares kept European shares under pressure on Tuesday, after losses in Asian markets with Japanese stocks declining more than 5 per cent.
However, expectations of a good dividend yields kept the downside in prices limited. “Valuations have dropped by a third, so dividends have moved up. Dividend has been a good attraction in the market,” Shabbir said.
In stock-specific action, Damac Properties closed 4.82 per cent higher at Dh2.61, while Dubai Investments closed 1 .18 per cent higher at Dh1.72. Gulf Finance House ended nearly half a per cent higher at Dh0.554. Emaar Properties closed 0.71 per cent lower at Dh5.58. “Long term traders should remain neutral at current times with the aim to reposition only after stronger trending characteristics appear on long term charts,” Menacorp said in a note to clients.
Out of a total of 35 stocks traded on the exchange, shares of 13 firms rose, while shares of other 19 firms fell, the rest 3 remained unchanged.
“I don’t think there would be much in fourth quarter numbers. Market would await the announcement of the first quarter results. However markets would be prone to pressure if oil prices falls, but generally indices would be rangebound till we see more clarity about future dividends,” Shabbir said.
Oil futures climbed as much as 3.1 per cent on Tuesday, after dropping 3.9 per cent on Monday. Crude is down about 18 per cent this year on speculation a global glut will persist.
In Abu Dhabi, the general index closed 1 per cent lower at 4,062.06. “Long and medium term traders should remain outside of the market, while bearish scenarios continue to develop. In the medium term the market remains strongly bearish on Abu Dhabi index,” the Menacorp report added.
Dana Gas closed more than 2 per cent lower at Dh0.47. Union National Bank closed 2.33 per cent lower at Dh3.35. Eshraq Properties closed more than 8.62 per cent higher at Dh0.63. Aldar Properties closed 1.27 per cent higher at Dh2.40.
“The long term trend is strongly bearish at the time being as marked by the fall below many daily strong support zones. Long term bullish scenarios have been postponed for now and traders should be waiting for fatigue in this descend before considering new positions in Aldar Properties,” the Menacorp report said.
Out of a total of 27 stocks traded on the exchange, shares of 16 firms fell, while shares of other 6 rose.
The Qatar Exchange index, which was shut for trade on Monday, closed 0.81 per cent higher at 9,698.37.
“The Qatar index is currently trading around the 9,650 resistance, foreigners continue to sell the market specially IQCD after weaker than expected earnings, market will most probably continue its downtrend,” said Hisham Khairy, Head of Institutional Trading at Menacorp.
Elsewhere in the Gulf, Muscat Securities MSM 30 index closed 0.19 per cent lower at 5,388.02, while Kuwait Stock Exchange index closed 0.87 per cent lower at 5,163.80.