Profit-taking breaks 8-day gaining streak on Dubai index

09/04/2015 00:51 AST

The Dubai index eased on Wednesday after gaining for eight sessions in a row as investors resorted to profit-taking. The Abu Dhabi index ended almost flat.

The Dubai Financial Market General Index ended 0.43 per cent lower at 3,761.19, after gaining more than 10 per cent in the previous eight sessions.

“We ran into profit-taking but it wasn’t a big round of profit-taking and it suggests to me that rally has a bit further to go. The rally will go until the first quarter numbers are completed,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.

Shares of Dubai Investment ended 3.32 per cent higher at Dh2.80. Damac shares also closed 1.54 per cent higher at Dh2.55. Another construction major Arabtec also ended 1.15 per cent higher at Dh2.57.

Out of a total of 33 stocks traded on the exchange, shares of 12 companies rose, while shares of another 19 companies fell. Volumes stayed at elevated levels to reach Dh700 million, compared to Dh500 million last week.

Banking results eyed

“It shouldn’t be difficult for companies to beat expectations on results. There would be results out next week, so the investors would take leads from the results,” Manibhandu said.

“Banks are where people are worried about because of deposit growth slowing, which could have an impact on the net interest margins,” Manibhandu said.

Abu Dhabi Securities Exchange General Index ended 0.28 per cent higher to be at 4,572.56.

Aldar Properties ended 0.77 per cent lower to be at Dh2.57, while Abu Dhabi Commercial Bank ended 0.29 per cent lower to be at Dh6.9. Dana Gas ended more than 2 per cent higher to be at Dh0.450.

Out of a total of 26 companies traded on the exchange, shares of 11 fell, while shares of another 11 companies rose.

Tadawul extends gains

Saudi Arabia’s Tadawul ended 0.56 per cent higher at 8,851.83, extending gains for another session helped by crude oil.

“Tadawul going up on Wednesday may be a short-term reaction. After the deal with Iran, supply surpluses would be going up. Any sort of rally in the short term in crude oil would be short-lived,” Manibhandu said.

Brent crude has risen sharply in the past two days and although it has pulled back slightly on Wednesday morning, it is still above $58 (Dh231) per barrel.

Saudi Basic Industries ended 2.49 per cent higher at 84.5 Saudi riyals, while Knowledge Economic City ended 7.33 per cent higher at 24.15 riyals. Saudi Arabian Mining Company ended 1.31 per cent higher at Dh38.7 riyals.

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