30/07/2015 08:00 AST
UAE indices witnessed consolidation for another session on Wednesday, even as traders struggled to find new catalysts amid strong results from banks and others.
The Dubai Financial Market General Index ended 0.53 per cent higher at 4,131.80, and shares worth Dh338 million were traded, a third compared to the daily average of more than Dh1 billion.
“We are trading in the same range in Dubai, and I don’t think we will move out of this range anytime soon,” Hisham Khairy, Head of Institutional Trading, MENACORP told Gulf News, adding “the chances of the index going down is more than going up.”?“The liquidity, which is currently absent in the market, won’t be coming back soon. In fact I see selling from institutions,” Khairy added.
Dubai Islamic Bank ended 2.10 per cent higher at Dh7.30, after registering a 35 per cent jump in net profits, beating analysts expectations.
“Main interest would remain in the banks. There could be action on DP World due to the Iranian deal, but rest of the market would be very quiet,” he said.
Shares of Arabtec ended 2.12 per cent higher at Dh2.41, while Emaar Properties ended 0.13 per cent lower at Dh7.89.
Emaar Properties has been the major drag on the markets, which has turned the outlook negative, analysts said.
“The daily trend for Emaar remains to lack clear trending characteristics with a slight bias to the downside after the drop below Dh7.65 earlier this month,” MENACORP said in a report mailed to its clients.
Aramex fell more than 1 per cent to end at Dh3.42.
Out of a total of 36 firms traded on the exchange, shares of 22 companies rose, while shares of another 10 firms fell.
Next trigger
“The trigger for the local market would be from outside such as oil or from some trigger in the US or Eurozone,” Khairy added.
Brent crude has shed more than 20 per cent from its high to be at around $53 (Dh194.67) per barrel, and analysts say there could be further pressure if more crude supplies from Iran comes on board, adding to the already existing supply glut.
In Abu Dhabi, the general index ended 0.67 per cent lower at 4,821.99. Shares of Etisalat ended more than 5 per cent lower at Dh14 after posting disappointing quarterly numbers. Dana Gas closed 1.82 per cent lower at Dh0.54.
Elsewhere in Gulf, Saudi’s Tadawul index ended 0.28 per cent higher at 9,116.11, while Qatar Exchange index closed 0.08 per cent lower at 11,822.17.
Kuwait Stock Exchange Index closed 0.15 per cent highera to 6,245.03.
Gulfnews
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