Dubai Financial Market Dubai Financial Market

2,754.04 0.75 0.03 %

DSI recovers lost ground in ranged Dubai market

(7/10/2018 7:34:00 AM)

Drake and Scull International (DSI) shares recovered some lost ground in an otherwise dull Dubai market. DSI shares rose more than 10 per cent to close at Dh0.702.

Traders were selling shares of DSI over the past few weeks amid margin call pressure. DSI shares have lost 47 per cent since June 18, when its shares started falling.

“The exchange was hindered by Takaful Emarat that saw red on account of investors’ anticipation of Tabarak Investment liquidating its shares to maintain its distressed Drake and Scull margin position,” the Mencorp note sent on Monday morning said.

Commenting on the outlook on shares, the note added, “in the event of the release of discouraging financials from DSI, prices of both shares are expected to decrease significantly.”

On the broader markets, the Dubai Financial Market General Index closed 0.35 per cent lower at 2,875.32 amid low volumes. Traders holding long or entering fresh must have stops placed under the 2,800 support level, Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

Gulf Finance House closed 0.68 per cent higher at Dh1.49. Gulf Navigation closed at Dh1.030, up 7.97 per cent. Shuaa Capital closed 0.93 per cent higher at Dh1.030. “If the support at Dh0.99 hold strong in Shuaa, it may recover towards the Dh1.15/Dh1.50 resistance levels,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

The Abu Dhabi Securities Exchange general index closed 0.03 per cent higher at 4,616.96.

“The short-term technical picture is positive as long as the index trades above the neckline and the channel support zone at 4,490,” Prakash said. Taqa shares closed more than 4 per cent at Dh1.2. Eshraq Properties closed 3.17 per cent higher at Dh0.65.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was 0.88 per cent higher to 8,294.80. Top gainer Alinma Bank closed 1.23 per cent higher to 21.32 Saudi Riyals.

Gulf News