UAE bourses pause after strong gains

INDEX MAY WITNESS RESISTANCE AT 2,850 AFTER BREACHING 50-DAY MOVING AVERAGE

Activity in the UAE markets came to a griding halt yesterday after two aggressive sessions after traders were hesitant to initiate new orders as the index neared a key resistance level.

The Dubai Financial Market general index closed 0.37 per cent lower at 2,794.98. The index may witness resistance at 2,850, analysts say after breaching the 50-day moving average of 2,780 on Thursday. Traded volume tumbled to 56 million shares from 150 million shares in the previous session.

Talking generally on the volumes, First Abu Dhabi Bank Securities said in a note, “We see limited appetite especially for UAE equities from investors though this should improve with uptick in the volumes in the coming weeks. However, any sustainable rally in the indices remains to be seen.”

Traded volumes are nowhere near the Dh1 billion seen a few months ago. There has been a lack of appetite among traders due to overhang of geopolitical in the region.

In stock specific action yesterday, Emaar Properties closed 1.33 per cent lower at Dh5.20, after gaining for two consecutive sessions.

However, “a soft property price outlook coupled with oversupply concerns continue to remain a drag on Emaar Properties,” FABS said in its monthly outlook.

Dubai Islamic Bank closed 0.19 per cent lower at Dh5.28. Arabtec closed nearly 1 per cent lower at Dh2.03. The Abu Dhabi Securities Exchange general index closed 0.02 per cent lower at 4,919.84. Traded volume stood at 15 million shares compared to 50 million shares in the previous session.

Aldar Properties closed 2.8 per cent lower at Dh1.72, while RAK Properties closed 2.4 per cent lower at Dh0.57.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.39 per cent lower at 7,848.46.

Alinma Bank closed 1.11 per cent lower at 21.46 Saudi riyals, while Saudi Basic Industries Corp closed 0.63 per cent lower at 125.80 riyals. The Qatar exchange index closed 0.49 per cent higher at 10,331.14. The Muscat MSM 30 index closed 0.30 per cent higher at 4,424.86. climate