Gulf News

Dubai falls further from key level

TADAWUL EASES AS ANALYSTS FEEL SHARES ARE ‘TOO RICHLY VALUED’

- BY SIDDESH SURESH MAYENKAR Senior Reporter

The Dubai index extended losses yesterday after the gauge struggled to breach the key technical indicator amid continued pressure on Emaar Properties, which has the highest weightage on the index.

The Dubai Financial Market General index closed 0.83 per cent lower at 2,791.71. The Dubai index had been struggling to breach its 50-day moving average of 2,855. The index had earlier attempted to breach the important level for five consecutiv­e times since MidAugust.

“The Dubai index may extend fall back towards the previous low at 2,727,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said. Emaar Properties closed 2.98 per cent lower at Dh4.88. Dubai Islamic Bank closed 0.56 per cent lower at Dh5.32.

DP World closed 1.71 per cent higher at $19. Deyaar Properties closed more than 2 per cent higher at Dh0.444.

The Abu Dhabi Securities Exchange general index closed 0.12 per cent higher at 5,007.12.

“The overall trend is bullish we expect a bullish breakout which shall continue the up-move towards given target zone at 5,200,” Prakash said.

First Abu Dhabi Bank closed 0.27 per cent higher at Dh14.66. Etisalat closed at Dh16.72, up 0.36 per cent. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.14 per cent lower at 7,997.61.

“We believe that most of these Saudi large caps are too richly valued and are moving on technical factors rather than fundamenta­l ones,” Al Mal Capital said in a note.

Positive trajectory

The Tadawul index has been on a positive trajectory with 13 per cent gains since January 1. “By sticking to our process — which is based on a bottom-up and value-driven approach — we have been avoiding most of these names and this had some negative consequenc­es on our relative performanc­e,” the note added.

The Muscat MSM 30 index closed 0.22 per cent higher at 4,525.78. The Qatar exchange index closed 0.13 per cent higher at 9,902.48.

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