UAE indices slip despite strong global leads

18/09/2017 05:31 AST

UAE indices witnessed mild profit-taking on Sunday amid low volumes, despite positive leads from global markets and surging oil. Analysts say the undercurrent is strong but a lack of fresh fund flows is curtailing any further accumulation in stocks.

Emaar Properties closed 0.68 per cent lower at Dh8.74. The Dubai Financial Market (DFM) General Index slipped 0.70 per cent to close at 3,631.76. Dubai Islamic Bank (DIB) closed flat at Dh6.19 while Union Properties retreated 1.13 per cent to Dh0.873.

“[A] close over Dh6.30 shall extend [the] move towards Dh6.35 in the short term. Traders may look to add with stop placed under Dh6.08,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note.

DIB stayed steady at Dh6.19 while Arabtec shed 1 per cent to close at Dh2.95. Emaar Malls was 1 per cent lower at Dh2.38.

The Abu Dhabi Securities Exchange (ADX) General Index closed 0.77 per cent lower at 4,446.57.

ADIB shares jumped in a weak Abu Dhabi market, after buying was witnessed in UNB last week. ADIB witnessed trades of 21 million shares, its highest since July 24. Dana Gas witnessed profit-taking after hitting a 52-week high of Dh0.85. The stock closed 6 per cent lower at Dh0.78.

“Dana continues to grab headlines and could see some selling pressure on [the] back of above news, [the] stock has almost reached its first target around the Dh0.89 [mark] after breaking the Dh0.77 resistance [level]. Bear in mind the big gap around the Dh0.70 [level] that could be closed anytime,” said Hesham Khairy, head of institutional trading at Menacorp.

Elsewhere in the Gulf region, firm oil prices supported sentiment in Saudi Arabia, with the Tadawul index gaining 0.30 per cent to close at 7,395.37. The Qatar Exchange index, however, edged 0.41 per cent lower to close at 8,375.18 while the Muscat MSM 30 index closed 0.10 per cent lower at 4,997.65. Brent crude prices were 3.4 per cent higher on Friday.

Gulfnews