Tuesday, Dec 03, 2013

Dubai: Dubai shares saw some volatile trading on Tuesday but the benchmark index managed to advance, even as the majority of stocks traded ended in negative territory.

Investors booked profits on selective stocks that had witnessed gains in past few weeks in the run up to the decision on Expo 2020 last week, which went in favour of the emirate.

The DFM General Index climbed 0.26 per cent to end at 2,994.90. Of the 30 stocks traded, 17 declined, 11 increased and two remained unchanged.

In the capital, the ADX General Index gained 0.61 per cent to 3,919.75. Of the 34 stocks traded, 18 closed higher, 12 decreased and four remained flat.

“After the Expo win the market opened up strongly, but saw some selling from traders [who were] concerned that the news was already priced in because the market was moving up in the previous months,” said Firas Al Zghaibi, financial markets strategist for Sales, Brokerage and Business Development at Menacorp.

“Usually if the news is priced in, then the market goes down quickly after the news. In this case it held up, indicating that more positive news is expected in the future. On Monday, most stocks went up with high volumes. They retraced today with lower volumes, which shows that the market is resting and can be expected to continue climbing higher this month.”

Dubai, so far this year, is up a staggering 82 per cent and investors had taken positions on some of the stocks last month hoping to make some quick profits.

Among the stocks that declined were the Dubai Financial Market, which lost 2.12 per cent to Dh2.30; Emaar Properties, which was down 0.46 per cent to Dh6.43; Emirates NBD, which fell 1.69 per cent to Dh5.25 and Dubai Investments, which shed 1.26 per cent to Dh2.35.

“Today’s market movements do not yet warrant serious concerns,” added Al Zghaibi.

“A short term stop loss will be triggered in the DFMGI if it breaks the support level near 2,890 points; for ADX the figure to watch would be at 3,815 points”.

By Gaurav Ghose Financial Features Editor

Gulf News 2013. All rights reserved.