Pre-Eid rally cools off on Dubai index

ADCB HITS ITS HIGHEST LEVEL IN 52 WEEKS DESPITE FLAT ABU DHABI MARKET

The Dubai index witnessed mild profittaking yesterday after a pre-Eid rally extending over the past two sessions.

The Dubai Financial Market (DFM) General Index closed 0.59 per cent lower at 3,078.96 after gaining 6 per cent since May 30 (with the exception of June 6).

“Medium-term traders may look to hold and add on dips, with stops placed below the key support level of 3,000,” said Shiv Prakash, a senior analyst with First Abu Dhabi Bank Securities (FABS) in a note.

Emaar Properties closed 0.86 per cent lower at Dh5.75 while Union Properties closed more than 1.5 per cent lower at Dh0.80.

In the UAE capital, the Abu Dhabi Securities Exchange (ADX) General Index closed a marginal 0.02 per cent higher at 4,734.19.

Abu Dhabi Commercial Bank (ADCB) rose as much as Dh7.68 to hit its highest level in 52 weeks despite exhibiting a sideways trend on the Abu Dhabi bourse.

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“ADCB may see a leg up towards the trendline at Dh7.80 and then target Dh8.90 in the medium term,” Prakash said.

Analysts expect higher weightage on Aldar Properties and Dubai Investments in rebalancing on the FTSE Emerging Market index, which could result in inflows.

Aldar Properties closed at Dh2.12, almost flat compared to the previous session.

Bullish breakout

“The stock saw a bullish breakout at Dh2.11 and volumes are increasing. The stock is poised to run initially to Dh2.25 and hit Dh2.50 in the medium,” Prakash said.

Elsewhere in the Gulf region, Saudi Arabia’s Tadawul index eased 0.06 per cent lower at 8,249.08.

The Qatar Exchange index closed 0.46 per cent lower at 9,160.97 while the Muscat MSM 30 index fell 0.10 per cent to close at 4,598.18.

The Dubai Financial Market said holidays will start from the first day of Shawal, including Sunday, when trading will remain shut.

Trading will resume on the fourth day of Shawal, the bourse said in a statement posted on its website.

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