27/01/2016 06:54 AST
Abu Dhabi and Dubai indexes ended a tad lower on Tuesday due to negative leads from crude, but buying in select stocks helped to keep the downside limited.
The Dubai Financial Market General index ended 0.20 per cent lower at 2,698.43, after hitting a low of 2,641.77 earlier in the session.
Buying was seen on select stocks like Arabtec and Gulf Finance House (GFH). Arabtec ended 0.87 per cent higher at Dh1.16, while GFH ended 1.59 per cent higher at Dh0.512.
“Arabtec remains in a strong downtrend in the long term trading in price ranges the share found itself trading at in 2013 just before the bullish run of 2014,” Menacorp said in a note to its clients.
Among the losers were Dubai Investments, Emaar Properties and Emaar Malls Group. Dubai Investment ended 2.55 per cent lower at Dh1.530.
The short term continues to be strongly bearish for Dubai Investments, with first target of bearish swing outlined at Dh1.70 and in extension the Dh1.45 level, the Menacorp note said.
Emaar Malls ended nearly 1 per cent lower at Dh2.12. “Having in mind the given bearish characteristics, long term traders in Emaar Properties 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.
On Nasdaq Dubai, DP World ended more than 3 per cent lower at $17.20. Out of a total of 33 stocks traded on the exchange, shares of 20 firms fell, while other 11 stocks rose, the rest remained unchanged.
The Abu Dhabi Securities Exchange General index closed 0.39 per cent lower at 3,800.02.
With the primary trend characteristics continuing to be strongly bearish on the ADX index, long and medium term traders should remain outside of the market. In the medium term the market remains strongly bearish after the break below 3,980, the Menacorp note added.
In stock specific action, Aldar Properties ended close to a per cent to be at Dh2.12, while Union National Bank ended more than 8 per cent lower at Dh3.18 after lower than expected fourth quarter results.
“The long term trend is strongly bearish for the time being as marked by the fall below many daily strong support zones,” the Menacorp note added on Aldar Properties.
Volatility:
“I think the volatility would still be here. We would continue to see some upward and downward movements in coming sessions,” Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.
“We saw the big bounce on Sunday in our local market with very little follow through. It’s a bit early to say if we have reached a bottom. There is a lot of negativity in the price, but it is a little bit uncertain in terms of growth and China in particular,” Khokhar said.
“We are near to a bottom, but we may not be there as yet,” Khokhar said, “volatility won’t just be on the downside but it will also be on the upside.”
Investors would also eye fourth quarter earnings from companies for leads.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul or Tasi index closed 0.48 per cent higher at 5,637.31, while Muscat exchange index closed 0.64 per cent lower at 4,934.23.
Gulfnews
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