Dubai index drops in last hour of trade

Selling continues as benchmark has shed more than a fifth of its value in the past year

The Dubai index dropped more than one per cent in the last hour of trade yesterday, extending the previous day’s decline as most stocks fell.

The Dubai Financial Market general index closed 1.15 per cent lower at 2,550.50. “It seems that the market is not responding to company fundamentals with ‘the good being mixed with the bad’; companies with solid track record in terms of profits and dividends are being pushed lower just as those with financial difficulties,” said Issam Kassabieh, senior financial analyst at Menacorp.

The Dubai index has shed more than a fifth of its value in the past year.

“The trend remains bearish in the Dubai index and may be headed lower towards the next target of 2,400/2,330 in the coming weeks. The previous support zone of 2,668/2,700 will now turn to be the strong resistance point,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said. Traded values have tumbled on the bourse, falling more than 29 per cent this year.

“The weakness in volumes is also being reflected in weak off-plan activity for property developers. We remain cautious on the real estate sector,” Al Mal Capital said in a note.

Emaar Properties closed 1.88 per cent lower at Dh4.17. Emaar Properties has been instrumental in pushing the index 1,000 from its high of 3,531 in early January.

“The support for Emaar is seen at Dh4.20, but any weekly close below shall extend the decline and hit its 2016 low of Dh3.87,” Prakash said.

A bulk deal of 50 million shares was seen in Salama Insurance, which closed 6.11 per cent lower at Dh0.461. Shuaa Capital closed more than 6 per cent lower at Dh0.882. Union Properties closed 1.29 per cent higher at Dh0.47. Gulf Navigation closed 1 per cent higher at Dh1.02.

The Abu Dhabi Securities Exchange general index closed 0.82 per cent lower at 4,836.45. Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.12 per cent lower at 7,839.27. The Muscat MSM 30 index closed 0.22 per cent lower at 4,547.73.