UAE stock market traders urged to look for buying opportunities

Sunday, Aug 23, 2015

Dubai:

UAE traders should look at buying opportunities after the Dubai index fell nearly a fifth from its 2015 high, analysts said.

“I advise investors to buy at low levels this week. I see a recovery in Abu Dhabi index before end of this week because it has strong support at 4,000,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts, adding “Dubai index also has a strong support at 3,342/3,180.”

The Dubai Financial Market General index closed 6.96 per cent lower at 3,451.48, after falling 3 per cent in the last session. The Abu Dhabi index also witnessed more than 5 per cent cut.

“There are a lot of factors for markets to go down, and there is all probability that US Federal Rerserve may postpone its rate hike, that is a high risk for global equities,” said Al Ashri.

Emaar Properties closed 8.31 per cent lower at Dh6.18, while Dubai Islamic Bank closed 5.59 per cent lower at Dh6.59.

“Emaar Properties has a strong support at Dh5.78/5.67, and I recommend to buy at these levels for a target of Dh7,” said Al Ashri. Dubai Islamic Bank is still in an uptrend, and has a strong support at Dh6.11, said AL Ashri.

Arabtec closed 9.60 per cent lower at Dh1.79.

Arabtec is still negative on the chart, and may hit a new low of Dh1.63, said Al Ashri.

In Abu Dhabi, the general index closed 5.01 per cent lower at 4,286.49.

Abu Dhabi Commercial Bank closed more than 7.9 per cent lower at Dh7.02.

Abu Dhabi Commercial Bank has a strong support at Dh6.81, and may recover from this area and may go up again to hit resistance level of Dh8.2, said AL Ashri.

Aldar Properties closed 8.44 per cent lower at Dh2.06.

Aldar Properties may recover to be at Dh2.27 after hitting support level of Dh1.93, said Al Ashri, adding Dana Gas may recover again and hit resistance level of Dh0.53, said Al Ashri.

Dana Gas closed 10 per cent lower at Dh0.45.

Tadawul index closed 6.86 per cent lower at 7,463.32.

Saudi index may recover from current levels and may go up by 2-3 per cent, said Al Ashri.

“Sabic (Saudi Basic Industries) has a strong support at 73.5 Saudi Riyals, and won’t break the support so easily,” said Al Ashri. Sabic closed 9.07 per cent lower at 77.75 Saudi Riyals.

Elsewhere in the Gulf, Qatar index closed 5.25 per cent lower at 10,750, while Muscat index closed 2.94 per cent lower at 5,910.74.

By Siddesh Suresh ?Mayenkar Staff Reporter

Gulf News 2015. All rights reserved.