Dubai index falls over 1.5% as profit-taking sets in

28/04/2016 05:49 AST

The Dubai index fell more than 1 per cent on Wednesday as traders resorted to profit-taking from the recent high. The Dubai Financial Market General index closed 1.58 per cent lower at 3,506.95, after gaining more than 4 per cent since April 1.

“It is difficult to sustain such a long rally for long, so we have seen some profit-taking,” said Sebastien Henin, head of asset management at The National Investor.

Dubai Islamic Bank ended more than 3 per cent to be at Dh5.98. Emaar Properties closed 1.77 per cent lower at Dh6.67.

“The recent break above the 6.32 level has shifted the medium term outlook to bullish and raised confidence for an extended move targeting the 7.30 level. With initial targets reached at 6.70, medium term traders can take this opportunity to trail positions to entry level,” said Menacorp said in a statement emailed to clients.

Arabtec ended 0.6 per cent lower at Dh1.67. However, a few stocks ended in positive zone. Gulf Finance House ended 1 .02 per cent higher at Dh0.891. Gulf Navigation ended nearly 2 per cent higher at Dh1.06. Out of a total of 34 stocks, shares of 20 firms fell, while other 9 rose.

Momentum shift
In Abu Dhabi, the general index closed almost flat, up 0.07 per cent to be at 4,588.20. “With first line of defence at the 4,260 pivot, an extended move above 4,600 is challenging the medium term outlook and shifting momentum to bullish,” the Menacorp note added.

TAQA ended more than 1 per cent lower at Dh0.63. Dana Gas ended 1.73 per cent lower at Dh0.57. Out of a total of 26 stocks traded on the exchange, shares of 8 firms rose, while another 9 fell.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.73 per cent higher at 6,806.34. Qatar exchange index closed 0.18 per cent lower at 10,159.52. Muscat Securities MSM 30 index ended 0.36 per cent lower at 5,939.10. The Kuwait Stock Exchange index closed 0.48 per cent higher at 5,429.40.

Egypt’s EGX 30 index closed 0.17 per cent higher at 7,899.86.

Gulfnews