UAE markets close higher as laggards stage comeback

21/07/2016 05:40 AST

Underperforming stocks staged a comeback on UAE bourses, with blue-chip Emaar Properties lifting the Dubai Financial Market (DFM) to extend the rally.

Aldar Properties, Gulf Navigation, Manazel and Ekttitab all witnessed renewed buying amid hopes that these stocks would outshine the index in the short term.

Aldar had gained 1.5 per cent before Wednesday while Gulf Navigation had held stead from the period before Britain’s decision to leave the European Union. However, the stocks fell behind average gains in Dubai and Abu Dhabi, at 4.7 per cent and 1.9 per cent respectively.

“Stocks which were seen lagging, attracted buyers [thus] giving fresh breakouts,” Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities, told Gulf News in an email.

Aldar, which had traded in a tight range, breached the resistance level of Dh2.78, with the stock ending more than 4 per cent higher at Dh2.90. Gulf Navigation peaked at Dh1.14 before slightly retreating to close the day’s session at Dh1.12 — registering a gain of 3.7 per cent. “The stock is expected to gain further momentum and hit Dh1.18 — [its] previous high,” Prakash said.

In Dubai, Emaar closed 1.7 per cent higher at Dh7.02. It was the most active stock in trade, accounting for about 32 per cent of volumes.

“If the support at Dh6.86 holds strong, the next target would be at Dh7.40 in the near term,” Prakash said.

Arabtec closed 1.3 per cent higher at Dh1.56, while Dubai Investments closed 0.46 per cent lower at Dh2.18. Dubai Islamic Bank closed 0.37 per cent lower at Dh5.43 while Union Properties closed 0.13 per cent higher at Dh0.768.

Out of a total of 37 stocks traded on the exchange, the shares of 22 companies advanced while those of seven others retreated. The Dubai Financial Market General Index (DFMGI) closed 0.58 per cent higher at 3,546.52.

In Abu Dhabi, apart from the laggards, Methaq rose 2.17 per cent higher to close at Dh0.94. Rak Properties fell more than 1 per cent lower to close the session at Dh0.60 but Fujairah Building Industries closed 15 per cent higher at Dh1.38.

The Abu Dhabi Securities Exchange (ADX) closed 0.63 per cent higher at 4,612.38. Out of a total of 36 stocks traded on the exchange, the shares of 18 companies rose while those of 11 fell.

Elsewhere in the Gulf region, the Qatar Exchange index closed 0.54 per cent lower at 10,591.60. The index has underperformed its counterpart in UAE, gaining a little over 1 per cent compared to 4.7 per cent gain in Dubai.

“[The] Qatar Index is trading bullish over the critical neckline resistance at 10,500, if [it] maintains over [the resistance level] it may target 10,815 in the near term.” Prakash said.

Saudi Arabia’s Tadawul All Share Index (Tasi) closed 0.24 per cent lower at 6,630.61 while the Muscat Exchange index ended the day’s session 0.38 per cent lower at 5,816.82. “The Tasi index is trading sideways, with resistance seen at 6,700 and the support at 6,540. Any either-side breakout shall dictate a clear trend,” Prakash added.

The Bahrain Bourse All Share index closed 0.36 per cent lower at 1,158.34. In the wider Middle East, the Egyptian index closed 1.23 per cent lower at 7,503.36.

Gulfnews