Dubai index falls nearly 2 per cent, closes below 4,000 mark

Sunday, May 31, 2015

Dubai: Dubai index fell nearly 2 per cent on Sunday due to technical selling a day before the MSCI re-weighting formally takes effect. Abu Dhabi index, however, ended a tad higher.

The Dubai Financial Market General Index ended 1.93 per cent lower at 3,923.24, after hitting a low of 3,912.85, a level last seen in mid-April.

The index ended below the keenly-watched 4,000 mark even as volumes fell to Dh267 million, almost 70 per cent down from the daily average volumes of Dh1 billion.

“People have run out of reasons to buy so they have turned to technicals from fundamentals. Dubai did not hold above 4,000 till close, and if there is no new news and bears get their way it can go further down to near 3,00 levels,” Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities, told Gulf News.

Emaar Properties, which has the maximum weightage on the index, ended 0.64 per cent lower at Dh7.75, while Dubai Islamic Bank ended 2.06 per cent lower at Dh6.65. Gulf Finance House ended 2.31 per cent lower at Dh0.720.

“In the medium term, any news on the timing of the Federal Reserve rate hike would be positive for UAE markets and banks,” Manibhandu said.

Out of a total of 33 stocks traded on the exchange, shares of 26 companies ended lower, while shares of four companies rose.

Slow trading

Analysts expect slow trading in UAE markets for the next couple of months, before any positive triggers that may come from third quarter results in July.

“I suspect that in the interim we have a potential for bad news on Greece front. If Greece can’t sort the payments with its creditors, we may have a shock downwards,” Manibhandu said.

In Abu Dhabi, the general index ended 0.25 per cent lower at 4,527.63. Abu Dhabi Ship Building ended 2.31 per cent higher at Dh3.1, while Agthia Group ended 2.03 per cent higher at Dh7.55.

National Bank of Abu Dhabi ended 1.91 per cent higher at Dh10.65.

Elsewhere in the Gulf, Saudi’s Tadawul All Share TASI index ended 0.69 per cent lower at 9,689.26, while Muscat Securities MSM 30 index ended 0.04 per cent lower at 6,387.85.

By Siddesh Suresh ?Mayenkar Staff Reporter