Bullish trend drives buying on UAE bourses
(1/10/2018 6:12:00 AM)
Widespread buying continued across the UAE’s bourses, a positive sign for a market that flirted with movement that was often sideways or lower last year.
The Dubai Financial Market (DFM) General Index trended up 0.38 per cent to close at 3,503.44 while the Abu Dhabi Securities Exchange (ADX) General Index inched up 0.17 per cent to close at 4,593.11.
Last year, the index fell from a high of 3,680 seen in October before rallying to a 50-day moving average of 3,460 in the last week of December.
Dubai Islamic Bank (DIB) closed 1.72 per cent higher at Dh6.49, providing support to the bourse.
Emaar Properties shed 0.68 per cent to close at Dh7.31 while Emaar Development gained 1.76 per cent to end at Dh5.77.
Emaar tested the Dh7.20 support and rebounded from there, [with the stock’s] strength expected to continue to Dh7.70,” Hesham Khairy, head of institutional trading at Menacorp, said. “Emaar Development held the Dh5.50 support level heading higher, [and the] target [is] Dh5.85.”
Air Arabia closed more than 3 per cent higher at Dh1.20. “Air Arabia [is expected to see a] bullish breakout that shall attract fresh buying and push it up towards the previous highs at Dh1.44/1.49 in the short term,” said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities.
Union Properties (UPP) gained 1 per cent to close at Dh1.01, with Khairy adding that it “may see a correction lower before continuing its uptrend.”
In Abu Dhabi, etisalat was the star of the day, with the stock advancing 0.18 per cent to close at Dh18. Eshraq Properties closed 1.27 per cent higher at Dh0.80.
Abu Dhabi Commercial Bank (ADCB) was up 1.1 per cent higher to end the session at Dh7.33, while RAK Properties closed 2.53 per cent higher at Dh0.81. Dana Gas closed 1.28 per cent higher at Dh0.79.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed fell 0.26 per cent to end at 7,290.96 while the Nomu index was weaker by 3.29 per cent at 3,023.02. The Qatar Exchange index closed 0.30 per cent higher at 9,002.46.