09/01/2017 05:35 AST
Firm oil prices and a bullish breakout of a technical barrier re-ignited buying on Dubai index on Sunday.
Dubai index rose more than 1.5 per cent, extending gains for another session to hit its highest level in more than three weeks as traders resorted to aggressive buying ahead of dividend season.
The Dubai Financial Market General index closed 1.77 per cent higher at 3,692.22, after hitting a high of 3,695.85, a level last seen on December 12.
“The market is risk on mode. We are seeing some good moves. Valuations in the UAE are attractive and even we have seen a good recovery and stability in oil prices,” said Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.
“We are also heading in dividend season, and UAE’s dividend is quiet attractive. So for me UAE is one of the attractive markets,” Khokhar said.
Technical analysts say buying has re-ignited ever since the index has breached the resistance level of 3,658 level. Mostly the buying was witnessed in a few blue chips and other small insurance stocks.
Union Properties, which was the actively traded stock, closed 4.42 per cent higher at Dh1.18. Amanat closed 1.52 per cent higher at Dh1, and was the second most actively traded stock.
In other stocks, Dubai Islamic Bank closed 2.28 per cent higher at Dh5.84. Dubai Financial Market shares also jumped more than 4 per cent to be at Dh1.38.
Out of a total of 40 stocks traded on the exchange, shares of 29 firms rose, while other 5 fell. Aggressive bets in select names resulted in a more than 40 per cent jump in volumes. Traded value came in at Dh1.1 billion, compared to Dh600 million on Thursday.
“The up moves would continue in the near-term,” said Khokhar.
Analysts say the 4,000 level would be the next big barrier that the index would eye for.
“Continued buying has lifted the markets up almost nearing the 3,658 level, break over shall target 3,725/3,900 in the near term,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities.
The Abu Dhabi Securities General index closed 0.7 per cent higher at 4,634.14.
First Gulf Bank closed 1.15 per cent higher at Dh13.15, while National Bank of Abu Dhabi Securities also closed 1.46 per cent higher at Dh10.40.
Abu Dhabi Islamic Bank closed 3.16 per cent higher at Dh3.92. Abu Dhabi Commercial Bank closed 1.35 per cent higher at Dh7.50. Eshraq Properties closed 0.96 per cent higher at Dh1.05. Out of a total of 30 stocks traded on the exchange, shares of 20 firms rose, while other 10 fell. The rest remained steady.
The Saudi Arabia’s Tadawul index closed 0.83 per cent lower at 7.138.86, while the Qatar exchange index closed 0.08 per cent higher at 10,725.
“Saudi index was the only one not to establish a gain although a loss of 0.2 per cent is negligible and that was mostly due to profit taking towards the end of the week,” said Al Masah Capital in a note.
The Kuwait Stock Exchange index closed 1.12 per cent higher at 5,896.49.
Gulfnews
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