Buying in blue chip triggers late recovery in Dubai index

03/08/2017 05:35 AST

Emaar Properties witnessed buying in the last hour of trade, triggering a recovery in the Dubai index. The Abu Dhabi index jumped 1 per cent on buying in banking stocks.

The Dubai Financial Market General Index closed 0.32 per cent higher at 3,660.94, recovering from a low of 3,627.60. Emaar Properties closed at Dh8.46, up 0.8 per cent.

“Emaar may gradually head higher towards the 50 per cent Fibonacci extension level at Dh8.57 and later shall target Dh9.60 in the medium term,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note.

Emaar Properties has gained 22 per cent in the past 39 trading sessions, after the company announced public offering of its real estate development unit, triggering hopes of another dividend from the company, post the IPO.

DXB Entertainments closed 7.39 per cent higher at Dh0.843. “DXB Entertainments bids have increased and stock is back above the 50 day moving average which hasn’t happened since September 2016, Dh0.81 remains the resistance to be broken for a reversal and could see strong selling pressure there,” said Hisham Khairy, head of institutional trading at Menacorp.

Dubai Investments closed 1.65 per cent higher at Dh2.46. “Traders may continue to hold the buy positions with trailing stops placed under Dh2.34 level. DI may target Dh2.65 in the short term,” Praskash said.

The Abu Dhabi Securities Exchange closed 1.02 per cent higher at 4,608.29, leading regional gains.

“Overall the Abu Dhabi index is headed towards the 4,720 mark in the short term. Traders may look to hold and add selectively from the lower support levels,” said Prakash, Abu Dhabi Commercial Bank (ADCB) closed 1.94 per cent higher at Dh7.34. First Abu Dhabi Bank closed 1.87 per cent higher at Dh10.90. Etisalat closed 0.81 per cent higher at Dh18.65. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.60 per cent lower at 7,066.37. The Muscat MSM 30 index closed 0.51 per cent higher at 5,074.390.

Gulfnews