Bargain hunters help drive DFM recovery
(5/16/2018 8:24:00 AM)
Traders continued to pick-up bargains on Tuesday after the Dubai index reached key support levels, while in Saudi Arabia, the Tadawul index traded lower.
The Dubai Financial Market (DFM) General Index closed 1.09 per cent higher at 2,936.75.
“Any recovery from current levels shall face stiff resistance at the 50-day moving average at 3,085 levels. Traders going long must place 2,790 as the stop loss,” Shiv Prakash, a senior analyst with First Abu Dhabi Bank Securities, said in a note.
Emaar Properties closed more than 2 per cent higher at Dh5.16, while Emaar Development advanced 1.46 per cent to Dh5.56. Drake and Scull was up 5.26 per cent to close at Dh1.20, while Dubai Investments trekked more than 6 per cent higher to end the session at Dh2. Emirates NBD, however, retreated 0.90 per cent to Dh9.91 by the end of trading, while DFM shares were 0.6 per cent down at Dh0.994.
“[The] DFM saw a bullish breakout with an increase in volume hinting at a reversal. The stock may rally towards Dh1.05/1.10 near term,” Prakash said. Traded value was placed at Dh374 million, compared to Dh247 million on Monday and an average of Dh300 million over the last few sessions prior to Monday.
The Abu Dhabi Securities Exchange (ADX) General Index ended the day in positive territory, rising 0.53 per cent to 4,470.57. “The short-term trend stands bearish and only a close over the 4,500 trigger shall turn the trend up again,” Prakash said. Etisalat was up 0.31 per cent to end the day at Dh16.4.
“Traders may look to buy etisalst shares with [the] stop-loss placed under the support zone at Dh15.90,” Prakash said. Elsewhere in the Gulf region, Saudi Arabia’s Tadawul index closed 0.39 per cent lower at 8,039.29.
Dar Aarkan Real Estate Development Co fell 3.67 per cent to close at 11.80 Saudi riyals while Almarai was down 0.71 per cent at 61.50 riyals. “The trend remains bullish in Almarai and if the trailing stop at 58 riyals holds strong, the stock will target 67/78 riyals in the medium term,” Prakash said. The Qatar Exchange index retreated 0.14 per cent to close at 8,922.