Dubai index snaps 3-month gaining streak in February

01/03/2017 05:54 AST

An early rally in Dubai index fizzled out on Tuesday due to profit-taking in Emaar Properties even as the index snapped a three-month gaining streak in February.

The Dubai Financial Market General Index rose as much as 3,655 intra-day basis, before closing 3,630.34, down 0.02 per cent.

In February, the index closed 0.3 per cent lower on month, after gaining more than 8.39 per cent from November through January. The index has been in a pattern of gains for three months followed by a two month fall.

“As we see the market performance on upside, and we break certain resistance level that’s when we see volumes picking up, but when we see pullback in the market, activity tends to dry-up,” Marwan Shurrab, head of high net worth and retail equity brokerage Al Ramz, said.

Traded value rose a tad to Dh748 million from Monday, but the quantum is still lower compared to the high of Dh1.5 billion.

“Market will wait for catalysts, whether it’s a breakout of a major resistance level or in terms of earnings or dividend distribution. I expect volatility to a minimum extent, so we see consolidation,” Shuraab said.

In stock specific action, Union Properties closed 1.98 per cent lower at Dh1.03. Dubai Islamic Bank closed less than a per cent higher at Dh6.25. DFM closed more than 4 per cent to close at Dh1.46.

“The trend is turning up again from the neckline support level with volumes on the rise hints accumulation, expected to recover back towards the previous high at Dh1.64 in the short term,” National Bank of Abu Dhabi Securities said in a report.

Out of a total of 31 stocks, shares of 12 firms rose, while 11 other firms fell. “The highly active stocks in terms of activity would be in focus, while the bluechips would be lagging behind,” Shurrab added. Banks and Etisalat weighed on Abu Dhabi index. Eshraq Properties fell 2.50 per cent lower at Dh1.17. National Bank of Abu Dhabi closed 1.87 per cent lower at Dh10.50.

First Gulf Bank fell more than 1 per cent lower at Dh13.65. Etisalat closed 4 per cent lower at Dh17.60. The Abu Dhabi Securities Exchange index closed 1.65 per cent lower at 4,552.09.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was steady at 6,967.98. The Parallel Market Index (NOMU) was up 1 per cent at 5,964.67. The Qatar exchange index closed more than 2 per cent lower at 10,702.12. The Muscat MSM 30 index closed 0.70 per cent lower at 5,780.03.

Gulfnews