All-round selling in UAE stocks as key support eyed

29/05/2017 02:29 AST

The UAE stocks witnessed all-round selling on Sunday, the first day of Ramadan, as traders saw a higher possibility of the Dubai index to fall towards keenly watched 3,200 level. The Dubai Financial Market General Index closed 1.01 per cent lower at 3,293.60. Dubai Islamic Bank fell more than 1 per cent to close at Dh5.74.

“The sharp drop in oil prices over the previous week is likely to have a negative impact on regional investors over the next couple of trading sessions,” Al Masah Capital said in a weekly note.

However, analysts had mixed views on where the index was headed. Menacorp expected a recovery, even as National Bank of Abu Dhabi Securities (NBADS) expected more downside on the gauge.

“We expect the market to try and rebound heading towards the 3,450 resistance it dropped from earlier this month, it could be a good opportunity for a short term trade,” Ahmed Waheed, Vice-President — Institutional Desk, Menacorp, said in a note before the market opened.

“The index may head towards the 3,280/3,200 levels. The?near term trend shall turn up only if we close over the 3,420 barrier,” Shiv Prakash, senior analyst with NBADS said in a note. Emaar Properties closed 1.24 per cent lower at Dh7.15. “The trend is down headed lower towards the supports at Dh7.12/7 in the near term in Emaar Properties. ?Only a break over Dh7.35 shall be considered bullish,” said Prakash. Emaar Malls also fell 2 per cent to close at Dh2.51. DXB Entertainments closed 1.97 per cent lower at Dh0.745.

“DXB Entertainments continue to remain under selling pressure, broke the stop at Dh0.81. Can extend the slide towards Dh0.65 level. Traders may look to remain on the sideline,” said Prakash.

Dubai Investments closed 2.43 per cent lower at Dh2.01. Arabtec closed at Dh0.743, up more than 2 per cent.

The Abu Dhabi Securities Exchange General Index closed 0.45 per cent lower at 4,496.38. Union National Bank closed 3.81 per cent lower at Dh4.8. Agthia Group closed 3.37 per cent lower at Dh5.16. Sharjah Islamic Bank closed 4.38 per cent lower at Dh1.31. Waha Capital closed 2.33 per cent lower at Dh1.68.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.29 per cent lower at 6,783.39. Sabic closed 0.97 per cent lower at 97.25 Saudi riyals, while Al-Ahlia Insurance Co closed 7.33 per cent lower at 10.75 riyals. The Qatar exchange index closed 0.29 per cent higher at 10,123.23. The Muscat MSM 30 index closed 0.15 per cent lower at 5,386.64.

Gulfnews