UAE markets almost flat, seen remaining sideways
Published: 19:14 February 17, 2016
Dubai: The Dubai and Abu Dhabi indices ended almost flat, up and down quarter of a per cent respectively on a day when oil recovered to trade 1 per cent higher.
The Dubai Financial Market General index closed 0.25 per cent lower at 3,057.21, after trading in a tight range of 3,038.62-3,064.84.
“The market has not established a clear direction,” Mohammad Shabbir, head of equity funds & portfolios at Rasmala told Gulf News. “The news of a freeze in production has not made any big impact.”
Iran said on Wednesday it would resist any plan to restrain its oil output as fellow Organisation of Petroleum Exporting Countries (Opec) ministers tried to persuade the country to join the first global oil pact in 15 years.
Oil has dropped more than 25 per cent since Opec effectively abandoned output targets at a meeting in early December.
In stock-specific action in Dubai, Gulf Navigation closed more than 8 per cent higher at Dh0.910, while Gulf Finance House closed more than 1.5 per cent higher at Dh0.587.
Amlak Finance closed nearly 1 per cent higher at Dh1.25. Dubai Islamic Bank closed more than 1 per cent higher at Dh5.92.
Emaar Properties closed more than 1 per cent lower at Dh5.60.
“Having in mind the given bearish characteristics, long-term traders should remain neutral 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.
Out of a total of 33 stocks traded on the exchange, the shares of 17 companies advanced while those of 12 retreated.
‘No clear direction’
“[The] market will remain sideways for another couple of weeks before we start to see signs of how companies report their first-quarter results,” Shabbir said, adding there is no clear direction in the international market too.
Better-than-expected results in 2015 kept the downside on the Dubai index limited, and it is down just nearly 3 per cent since the start of the year.
In Abu Dhabi, the general index closed 0.20 per cent higher at 4,148.63.
“Long- and medium-term traders should remain outside of the market while bearish scenarios continue to develop. Having achieved first target of the bearish daily swing at 3,800, an extended move is expected to continue towards second target, outlined at 3,450,” Menacorp said in a note.
Dana Gas closed more than 2 per cent higher at Dh0.49. Aldar Properties closed nearly half a per cent lower at Dh2.39.
“The long-term trend is strongly bearish, 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 this share. With the medium term having returned to bearish, the previous break below Dh2.20 has significantly weakened the technical picture and postponed any further bullish scenarios for the time being,” Menacorp’s note said.
Eshraq Properties closed more than 4.5 per cent lower at Dh0.58. Out of a total of 31 stocks, the shares of 15 companies rose, while those of 12 fell.
In other markets in the Gulf, the Muscat Securities MSM 30 Index closed 0.36 per cent lower at 5,360.74, while the Kuwait Stock Exchange Index closed 0.22 per cent higher at 5,146.28.