Dubai bourse rally begins to cool off

INDEX CLOSES 0.46% LOWER AS PROPERTY STOCKS SEE PROFIT-TAKING

Dubai index snapped a four day gaining streak yesterday as property stocks witnessed mild profit-taking.

The Dubai Financial Market General Index closed 0.46 per cent lower at 3,041.72, after gaining more than 5 per cent in the past four sessions.

As expected, markets saw a slight profit-taking from the resistance of 3,065. The index is headed lower to 3,020/3,000 support zone, said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities.

“Medium term traders may look to add on dips with stops placed below the support at 2,960,” Prakash said.

Emaar Properties closed 0.18 per cent lower at Dh5.54 while Dubai Islamic Bank closed 2.12 per cent lower at Dh5.07. Dubai Entertainments closed nearly 5 per cent lower at Dh0.397.

Drake and Scull (DSI) closed 0.86 per cent higher at Dh1.17.

“As for DSI, the company’s newest disclosure is unlikely to impact the stock’s price as investors focus on damage claims that could help boost the company’s balance sheet but as of matter remain as a part of a governance campaign,” Menacorp said in a note.

Abu Dhabi

The Abu Dhabi index extended gains for another session after the government announced a Dh50 billion stimulus package. The Abu Dhabi Securities Exchange general index closed 0.22 per cent at 4,662.58.

Abu Dhabi Commercial Bank (ADCB) may see a recovery towards the Dh7.50/7.80 target zones, Prakash said, adding etisalat may see further buying and recover towards the Dh17.40 in the short term. FABS had a technical buy at Dh15.90 last week.

ADCB closed 0.96 per cent higher at Dh7.37 while etisalat closed 0.6 per cent higher at Dh16.8.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.77 per cent lower at 8,319.03. The Qatar exchange index closed 0.92 per cent lower at 9,242.30 while the Muscat MSM 30 index closed 0.35 per cent higher at 4,596.51.

The Kuwait index closed at 4,787.32, up 0.61 per cent.