Momentum likely to continue on DFM
EMAAR GAINS MORE THAN 9% IN TRADE FOLLOWED BY DAMAC
The Dubai index is likely to continue its positive momentum in the coming weeks after it gained more than 8 per cent to breach the psychological 4,000 mark.
The Dubai Financial Market General Index jumped more than 3.5 per cent to end at 4,079.91, after hitting a high of 4,082.56, a level last seen in early December.
“I see strong momentum going into next week because we broke the psychological level of 4,000 with high volumes,” said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings.
“The Dubai index would face the next resistance at 4,289 in a few weeks,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts.
The Abu Dhabi Securities Exchange General Index ended at 4,655.80, up 0.72 per cent.
The Abu Dhabi index needs to breach 4,749 resistance level to witness a rally beyond 5,000, Al Ashri said.
Emaar to gain more
“Emaar Properties was helped by the AGM on Wednesday after approval of an aggressive dividend and confirmation of Alabbar’s re-election, which shows commitment to overall strategy and future of Emaar,” Shurrab said. Emaar’s shareholders approved a cash dividend of 15 per cent of the share capital equivalent to more than Dh1.074 billion ($292 million).
Emaar Properties recorded volumes of Dh500 million, about a fourth of the total volumes of Dh2 billion.
The volumes of Dh2 billion yesterday shows that liquidity is returning to the market. “The expectation is that we would continue to see an increase in turnover as the market has moved out of the trading range,” Shurrab said.
“I see Union Properties and Emaar Properties hitting a new resistance level. Union Properties may hit a resistance level of Dh1.49 within few weeks, while Emaar Properties may record new high of Dh8.67 next week,” Al Ashri said.
Union Properties ended at Dh1.3, up 6.56 per cent. Damac Properties may hit a new resistance level of Dh3.37 within a few weeks, Al Ashri said. He added that Aldar Properties has a new target of Dh3.17, while Dubai Islamic Bank may hit resistance at Dh7.33.
Saudi’s Tadawul All share TASI index ended 0.95 per cent higher at 9,251.19.
“The Tadawul index is still under risk, and if it breaches a resistance level of 9,550, we may see a new high of 10,000,” Al Ashri said.
Elsewhere in the Gulf, the Qatar index ended up 0.74 per cent at 11,979.83, while the Kuwait Stock Exchange index ended 0.50 per cent higher at 6,295.75.
The Muscat Securities Market 30 index ended 0.62 per cent higher at 6,270.72.