More pain seen in Dubai index as concerns persist

Thursday, Aug 20, 2015

Dubai: Dubai index, which breached the key support level of near 3,700 levels, may fall further next week even as Saudi’s Tadawul index is expected to recover.

The Dubai Financial Market General index closed 3.22 per cent lower at 3,709.84, after hitting a low of 3,684.99, its lowest level in more than five months.

“People are unnecessarily getting panicky and selling in the midst of it,” Muhammad Shabbir, head of equity funds & portfolios at Rasmala Investment Bank told Gulf News.

The index may fall towards the keenly-watched 3,500 levels, a technical analyst said.

“Dubai index is waiting for a new low next week with first strong support at 3,518, but may recover from there,” Osama Al Ashri, member of British organisation, Society of Technical Analysts said.

In stock specific movements, Emaar Properties ended 5.20 per cent lower at Dh6.74.

“Emaar Properties may fall further and breaches the support level of Dh5.55,” said Al Ashri, adding “Arabtec may hit a new low of Dh1.86 next week.”

Dubai Islamic Bank would witness strong support at Dh6.44, Al Ashri said. Amlak Finance may breach the support level of Dh1.79, said Al Ashri.

Dubai Islamic Bank ended 3.06 per cent lower at Dh6.98, while Amlak Finance closed 3.85 per cent lower at Dh2.

Out of a total of 34 stocks traded on the exchange, shares of 32 companies fell.

Positive:

“We are positive on banks along with some mid-cap names which has sound business fundamentals,” Shabbir said.

Abu Dhabi Securities Exchange general index closed more than 1 per cent lower at 4,512.48.

Abu Dhabi index may witness support at 4,369, before going higher, said Al Ashri. Abu Dhabi Commercial Bank (ADCB) ended 0.36 per cent lower at Dh7.70.

ADCB may not breach support level of Dh7.11, and may record new high above Dh10, said Al Ashri.

Aldar Properties closed 3.43 per cent lower at Dh2.25. Aldar Properties may fall below Dh2, if it manages to breach support level of Dh2.17, said Al Ashri, adding Dana Gas may consolidate in the recent range. Dana Gas closed 5.66 per cent lower at Dh0.50.

Saudi Tadawul index may consolidate in this area before recovering by another 100 points, said Al Ashri.

“I don’t think there is downside in local markets too. Saudi was down as much as 3 per cent earlier in the session and recovered by close,” Shabbir said.

Saudi’s Tadawul index closed 0.27 per cent higher at 8,012.83, after losing more than 3 per cent earlier in the session.

Saudi Basic Industries may consolidate in this area and won’t breach the support level of 78.75 Saudi Riyals, he added. SABIC closed 4 per cent lower at 84.75 Saudi riyals.

By Siddesh Suresh ?Mayenkar Staff Reporter