Dubai, Tadawul stocks rise as Syria strike fears ebb
(4/16/2018 7:39:00 AM)
Dubai index rose, extending gains for another session to hit its highest level in nearly a month.
The Dubai Financial Market General Index closed 1.83 per cent higher to 3,150.93, after gaining 1.98 per cent for the most of last week.
On Wednesday, the Dubai index fell more than 1 per cent on knee-jerk reaction after the US along with France and the United Kingdom launched more than 100 missiles targeting three chemical weapons sites in Syria, a move that analysts said would adversely impact the geopolitical situation in the Middle East.
“There was panic selling on Wednesday. But now there is a thinking in the market that this was an one-off exercise by the US and that’s why markets recovered,” Mohammad Shabbir, head of funds, Saudi Kuwaiti Finance House told Gulf News from Riyadh.
Emaar Properties closed 2.93 per cent higher to Dh5.98. Dubai Islamic Bank closed 2.93 per cent higher to Dh5.62. “DIB may target the 50-day moving average at Dh5.75 and neckline at Dh6.02 in the short term. Long positions if created must have a protective stop loss placed below its previous low at Dh5.48,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities (FABS), said.
FABS had a buy on the stock on April 10 at Dh5.45. Dana Gas closed 2.17 per cent higher to Dh0.94. Traded value stood at Dh131 million on Sunday. The Abu Dhabi Securities Exchange index closed 1 per cent higher to 4,699.43. Aldar Properties closed 2.91 per cent higher to Dh2.12 after the company said it plans to increase the foreign ownership limit to 49 per cent. Manazel closed 3.7 per cent higher to Dh0.96.
Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 1.8 per cent higher to 7,966.84. The Qatar exchange index closed 0.30 per cent lower to 8,891.89.
“Markets [in the region] would stay rangebound till first week of May, and we would enter the seasonal slackness during Ramadan and Eid,” Shabbir said.