Broad-based selling seen on Dubai bourse

19/02/2018 07:09 AST

Dubai bourse witnessed broad-based selling as sentiment remained weak with absence of buyers despite attractive valuations. On Sunday, the Dubai Financial Market General Index closed 1.15 per cent lower at 3,292.05.

The Dubai Financial Market General index has been on a downtrend since last month weighed down by lower than expected dividend from Emaar Properties post the primary offering of its unit. Technically, the index also fell below the 50-day moving average of 3,413, adding to further bearish sentiment.

“Middle East equity markets correlation with global equity markets remains low as they trade at a discount to their peers in developed and emerging markets and are coming out of a period of consolidation,” said Al Mal Capital in weekly note.

Emaar Properties closed 2.57 per cent lower at Dh6.07 while Dubai Islamic Bank closed 1 per cent lower at Dh6.19. Gulf Finance House closed 2.31 per cent lower at Dh1.27.

“The stock has breached the support level of Dh1.30 and may extend the fall towards the channel support of Dh0.95. Only a close over Dh1.45 may trigger bullishness,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said in a note.

In other stocks, Drake and Scull closed 0.5 per cent lower at Dh1.85. Ithmaar closed 9.97 per cent lower at Dh0.533.

Abu Dhabi

The Abu Dhabi Securities Exchange general index closed 0.11 per cent higher at 4,582.48 amid buying in banking stocks. Traders resorted to buying in etisalat and First Abu Dhabi Bank.

Etisalat closed at Dh17.35, almost flat compared to the previous session. Aldar Properties closed flat at Dh2.17. “A break below its previous low at Dh2.16 may attract further selling and target Dh2.10 in the near term,” Prakash said. First Abu Dhabi Bank closed at Dh11.4, up 0.44 per cent.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.09 per cent lower at 7,503.8, while the Qatar exchange index closed 0.57 per cent higher at 9,079.43.

Gulf News