Abu Dhabi, Dubai indices rise with world peers, but outlook negative

Thursday, Sep 10, 2015

Dubai: Abu Dhabi and Dubai indices rose with world peers on Wednesday although outlook remained negative amid falling oil prices.

The Dubai Financial Market General index closed 1.42 per cent higher at 3,626.00. The Abu Dhabi Securities Exchange General index 1.97 per cent.

“China was positive along with world markets, so all of that helped our local markets,” Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.

Global shares rose on Wednesday, led by an 8 per cent surge in Japanese stocks, helping lift the dollar as the prospect of more economic stimulus from China soothed investors rattled by recent market turmoil.

Emaar Properties, which has the highest weightage on the index, closed 0.63 per cent higher at Dh6.44. Emaar Properties is still risky stock, and it may see further downside of Dh5.55, said Al Ashri.

Damac Properties closed almost flat at Dh3.58, The stock may hit resistance level of Dh3.79 in a few days, said A Ashri.

Amlak Finance closed 3.76 per cent higher at Dh2.21. Out of a total of 36 stocks traded on the exchange, shares of 28 firms rose, while another 8 shares fell.

Arabtec shares ended flat at Dh1.93. “The share remains in a strong downtrend in the long term trading in price ranges the share found itself trading at in 2013 just before the bullish run of 2014,” said MENACORP on Arabtec in a note.

Aldar Properties in Abu Dhabi closed more than 3 per cent higher at Dh2.37. National Bank of Abu Dhabi (NBAD) closed 1.86 per cent higher at Dh9.85.

The long term trend remains bearish as suggested by the descending sequence of tops and bottoms and only a move above 12.80 can change this long term outlook,” MENACORP added on NBAD.

Downtrend

“The Dubai index is still in a downtrend on a medium term chart, and may continue to trade lower if it does not breach resistance level of 3,971,” Osama Al Ashri, member of British organisation, Society of Technical Analysts.

Investors are urged to be on the trading side than invest in this market, said Al Ashri.

“The outlook is still negative for Abu Dhabi index, if it breaches support level of 3,723, we may see further downside,” said Al Ashri.

Elsewhere in Saudi, the Tadawul index closed 2.25 per cent higher at 7,748.92.

TASI index may go up temporarily, but may go down again and hit anew low of 6,550 within few weeks, said Al Ashri.

Elsewhere in the Gulf, Qatar index closed 2 per cent higher at 11,659.42. while Muscat Securities MSM 30 index closed 0.36 per cent higher at 5,803.39.

By Siddesh Suresh ?Mayenkar Staff Reporter