Traders resort to profit-taking in UAE stocks

21/04/2016 05:32 AST

UAE indices edged lower as investors resorted to profit-taking at resistance levels even as companies announced first quarter results.

The Dubai Financial Market General index closed 0.48 per cent lower at 3,545.80, after gaining more than 3 per cent since April 10.

“We can see the volatility went down in the past sessions. The respite was necessary for UAE equity markets after the rally that we saw in the past 3 months,” said Sebastien Henin, head of asset management at The National Investor.

Gulf Finance House ended 0.23 per cent lower at Dh0.871, while Dubai Investments ended 0.42 per cent lower at Dh2.38. Hits Telecom ended more than a per cent lower at Dh0.430. Du or Emirate Integrated Telecommunications ended nearly 4.5 per cent higher at Dh6.54. Out of a total of 33 stocks traded on the exchange, shares of 22 firms fell.

In Abu Dhabi, the general index closed 0.44 per cent lower at 4,582.11. Eshraq Properties closed 1 per cent lower at Dh0.82, while Dana Gas ended more than 1 per cent lower at Dh0.58. Abu Dhabi Islamic Bank ended more than 7 per cent lower at Dh4.38, after the bank denied a Bloomberg report, that said the bank had plans to open shares to foreign ownership. “Markets should start to stabilise as we are 6 weeks away from Ramadan. Investors would be more cautious and not inclined to take any positions. I’m expecting volumes to go down and see less volatility in the market,” said Henin.

Ramadan will start in June, and Eid is slated for July.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.30 per cent lower at 6.512.43. Qatar exchange index closed 0.68 per cent higher at 10,366.93. Muscat Securities MSM 30 index closed 0.53 per cent higher at 5.739.47. Kuwait exchange index closed 0.05 per cent higher at 5,330.78.

Gulfnews