Bargain buying fizzles on Dubai index

SELLING TAKES PLACE IN SELECT STOCKS ON MILD RECOVERY

Bargain buying that was seen in the last few sessions halted yesterday. UAE stocks like Damac Properties and Amlak witnessed further selling on mild recovery, indicating a bearish outlook despite stocks reaching bargain levels.

The Dubai Financial Market General index closed 1.63 per cent lower at 2,556.68, after the index rose 4 per cent in the last three sessions.

Emaar Properties closed 3 per cent lower at $4.20, Union Properties closed 4.14 per cent lower at Dh0.417. Takaful Emarat closed 1.71 per cent lower at Dh1.72. Gulf Navigation closed 0.81 per cent higher at Dh0.999. Total traded value stood at Dh200 million.

DXB Entertainments closed more than 3 per cent at Dh0.285. “DXB Entertainment has formed a near-term bottom. Share prices have been recovering along with volumes, indicating accumulation,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

Going ahead, analysts are not sure about the market’s direction. “Dubai-based equities are strongly tied to the index and positive movements (as well as momentum) on blue chips such as Emaar (and subsidiaries) along with main banks such as Emirates NBD and Dubai Islamic, are essential for any real rally,” Issam Kassabieh, senior financial analyst, Menacorp said.

The Abu Dhabi Securities Exchange general index closed 0.63 per cent lower at 4,831.15. “The index may gain further strength and target 4,900/5,000 in the short term,” Prakash said.

Al Dar Properties closed 3 per cent lower at Dh1.55. Around the Gulf, Saudi Arabia’s Tadawul index closed 0.08 per cent lower at 7,908.07. Muscat MSM 30 index closed 0.70 per cent lower at 4,416.90. Kuwait all share index closed 0.19 per cent higher at 5,159.59. Bahrain all share index closed flat at 1,319.32.