Dubai bourse volumes tumble on lack of leads

23/05/2016 05:35 AST

Traded volumes on Dubai bourse tumbled to almost half of the previous months even as Abu Dhabi index fell more than 1 per cent to its lowest level in months.

Volumes in Dubai tumbled to Dh182 million, at least half of the normal average of Dh300 million. Traded volumes touched a peak of Dh1 billion in April.

“Lack of interest has converted into low market activity, and it’s not a surprise, even though on the international front, news flow has been pretty poor,” said Sebastien Henin, head of asset management at The National Investor.

Dubai index ended 0.66 per cent lower at 3,208.52. Dubai index is under correction phase, and may hit a low of 3,080 in the next few weeks, said Al Ashri, adding it would be termed as risk if the index breaches support level of 3,080, Osama Al Ashri, member of British organisation, Society of Technical Analysts said.

In stock specific movement, Arabtec ended 0.71 per cent higher at Dh1.41, while Emaar Properties ended 1.13 per cent lower at Dh6.13.

Arabtec may witness consolidation. If the stock breaches support level of Dh1.37, then it may fall to Dh1.32, said Al Ashri, adding Emaar Properties may fall to support level of Dh5.81 later this week.

Dubai Islamic Bank’s (DIB) volumes fell ahead its rights issue. “DIB may witness consolidation between Dh5.17-5.78. I see DIB as a good long term deal for investors,” Al Ashri said. DIB ended flat at Dh5.40.

Shuaa Capital rose more than 4 per cent on Sunday at Dh0.609. Shuaa Capital may reverse and fall to Dh5.55, said Al Ashri. Amlak, which ended 2.17 per cent lower at Dh1.35, may go down again to the support level of Dh1.27.

Quiet season:

“Between now and Ramadan we would see more investors parking in cash before an expected quiet season. We might see additional selling pressure on markets in an environment when no major news are expected,” Henin said.

In Abu Dhabi, the general index closed 1.13 per cent down to end at 4,187.59 led with losses in Etisalat. “Abu Dhabi index may hit a new low support level of 4,055,” said Al Ashri.

Etisalat may go down again to support level of Dh15.90 during this quarter, Al Ashri said. Etisalat ended 2.56 per cent lower at Dh17.15. Aldar Properties may hit support level of Dh2.44, said Al Ashri, adding First Gulf Bank may hit support level of Dh1.090.

Aldar Properties closed 1.56 per cent lower at Dh2.53. First Gulf Bank closed steady at Dh11.70.

Out of a total of 24 stocks traded on the exchange, shares of 15 fell, while those of seven others rose.

Saudi index seen consolidating

Saudi Arabia’s Tadawul index may consolidate going forward, analysts said.

Saudi’s Tadawul index closed 0.92 per cent lower at 6,633.53. It may consolidate between support level of 6,490-6,781, said Al Ashri, adding Qatar exchange index may fall to support level of 9,541.

Qatar exchange index closed 1.79 per cent lower at 9,638.26. Elsewhere in the Gulf, Muscat 30 index closed flat a 5,931.09.

Gulfnews