Broad-based buying witnessed in UAE bourses

13/12/2017 05:51 AST

Broad-based buying was witnessed on Dubai bourse as the index witnessed a reversal from its key support zone.

Dubai Islamic Bank provided the support to the index in absence of trading in Emaar Properties, whose board meeting on Tuesday approved the special dividend of Dh4 billion. In addition, insurance and other small stocks also gained in trade.

“The speculative names like DSI, GFH were in action. Market participants have been brushing aside any positive news. We hope the special dividend from Emaar Properties will support the market in the near term, and encourage investors to add more positions,” said Vrajesh Bhandari, portfolio manager Mena equities at Al Mal Capital.

GFH saw heavy buying in the last few minutes, and closed 3.75 per cent higher at Dh1.66, while Drake and Scull closed more than 6 per cent higher at Dh2.22. Dubai Islamic Bank closed 1.66 per cent higher at Dh6.14. Traded value jumped to more than Dh600 million. The Dubai Financial Market General Index closed 1.17 per cent higher at 3,453.99, after hitting a low of 3,414.02. “The market opened positive, witnessed select buying and broke over the trend reversal point at 3,435. The volumes will have to be on the higher side, otherwise it will prove to be a false breakout,” said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities.

The Abu Dhabi Securities Exchange general index closed 0.59 per cent higher at 4,381.8. “Etisalat moving up 3 per cent was encouraging, and it indicates the positive mood among investors,” said Bhandari.

etisalat hit a high of Dh17.32, the highest since November 15. The stock closed 1.17 per cent higher at 17.30.

Abu Dhabi Commercial Bank closed 3.51 per cent higher at Dh7.08. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.34 per cent higher at 7,124.27. The Qatar exchange index closed 1.39 per cent higher at 8,033.28.

Gulfnews