28/01/2016 06:07 AST
The Dubai index jumped more than 2 per cent on Wednesday helped by Tuesday’s bounce back in crude.
“There is a bit of stability returning back to markets, whether it sustains is questionable because even at one point gains were given back,” Mohammad Shabbir, head of equity funds & portfolio at Rasmala, told Gulf News.
The Dubai Financial Market General Index closed 2.02 per cent higher at 2,753.07 on the back of Tuesday’s recovery in crude oil, which closed more than 4 per cent higher as investors found reasons to hope for output cuts that could eventually reduce one of the biggest global supply gluts in decades.
However, analysts are betting on a short-term recovery in Dubai index.
“In the short-term, the Dubai index may still go up and hit resistance at 2,875 in a few days,” Osama Al Ashri, member of British organisation, Society of Technical Analysts.
In stock specific action, Gulf Finance House ended 2.93 per cent higher at Dh0.527, and was the most active stock traded on the exchange. “Gulf Finance House is trading in an oversold zone, and may hit a new high of Dh0.57/0.62 in the short-term,” said Al Ashri.
Emaar Properties ended 1.97 per cent higher at Dh4.66, while Arabtec ended less than a per cent lower at Dh1.15.
Emaar Properties may go up and reach the level of Dh4.91 by early next week, said Al Ashri, adding “the risk still remains until the stock breaches resistance level of Dh5.27. The stock is trading in a very high risk area, and may hit a low of below Dh4 during this quarter.”
Arabtec is still trading in uptrend on medium and long term chart, but the risk will start if it breaches support level of Dh0.95, said Al Ashri.
Dubai Islamic Bank may hit a new low of Dh4.51 by next month, Al Ashri said.
Dubai Islamic Bank ended more than 5 per cent higher at Dh5.53. Out of a total of 33 stocks traded on the exchange, shares of 23 firms rose, while other six shares ended in the green.
High yielding names:
“Investors should go in high yielding names which have been beaten 20-15 per cent, unless there is a pressure in the international markets, we might see some recovery,” Shabbir from Rasmala said.
The Abu Dhabi Securities Exchange General index closed 0.73 per cent higher at 3,827.82. Abu Dhabi index may go up to 3,911, but may fall after that to a low of 3,584, Al Ashri said.
Weaker than expected results from the banks weighed on sentiment, keeping the upside limited.
“The outlook for First Gulf Bank is still negative and the stock may breach support level Dh9.44 within few weeks,” said Al Ashri, adding Aldar Properties may face tough resistance level at Dh2.27.
Gulfnews
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