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Insurance stocks were among the top gainers in Saudi Arabia’s Tadawul bourse on Wednesday after the landmark decision to allow women to drive cars, which would mean increased demand for car insurance. The broader gauge, however, closed a tad lower.
The Company for Cooperative Insurance closed 9.77 per cent higher at 100 Saudi riyals. The Mediterranean and Gulf Insurance and Reinsurance Co. closed 9.34 per cent lower at 34.55 riyals. Al-Rajhi Company for Cooperative Insurance closed more than 6 per cent higher at 57.30 riyals. United International Transportation Co. closed 4 per cent higher at 23.94 riyals. The broader gauge however closed a tad lower, despite higher oil prices. The Tadawul index closed 0.09 per cent lower at 7,233.31.
Dubai bourse traders were put off by low volume trade, which has been in the range of Dh100-250 million, ignoring positive leads from oil, which hit its highest level since 2015. The Dubai Financial Market General index closed 0.02 per cent lower at 3,561.73. Traded value stood at around Dh200 million.
“Conditions are not conducive for quick trades. Low volumes, and geopolitical sentiment is clouding sentiment. The Dubai index may target anywhere between 3,580-3,600 before a possible technical recovery,” said Talal Touqan, Head of Research and Advisory at Al Ramz Capital.
The index has witnessed a reversal from the 50-day moving average, indicating a possible weakness in coming weeks. The index is up only 1 per cent so far in the year.
Gulf Finance House closed 3.51 per cent lower at Dh1.65. If GFH breaks below Dh1.63, the stock may hit Dh1.50, said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities. Emaar Properties closed 0.94 per cent higher at Dh8.55. “We will still see more bets on Emaar until the details are out,” Touqan said. Emaar Properties plan to sell 30 per cent of its stake in a development unit, the proceeds of which will be distributed as dividend among shareholders.
Drake and Scull closed 0.86 per cent higher at Dh0.380. Emaar Malls closed less than a per cent lower at Dh2.33.
Arabtec closed 0.35 per cent higher at Dh2.35. “It is not easy to claim that Arabtec’s downside is limited. The stock has entered an oversold teritorry. A dip below Dh2.8 could be used as a good speculative trade to bet on,” Touqan said.
Union Properties closed 0.12 per cent higher at Dh0.836. “Price close to Dh0.80 in Union Properties could present a good chance to benefit from upside,” Touqan said, adding some dips in Eshraq created a good buying opportunity. The Abu Dhabi Securities index closed 0.15 per cent lower at 4,407.
“The support at 4,420 got broken on Tuesday, headed towards the previous double bottom support area at 4,358 level,” said Prakash in a note. Abu Dhabi Commercial Bank closed higher Dh7.18, up more than 1 per cent.
Elsewhere in the Gulf, the Muscat MSM 30 index closed at 5,138.97, up 0.49 per cent. The Qatar exchange index closed 1.73 per cent lower at 8,421.20.
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