Thursday, May 01, 2014

Dubai: The Dubai Financial Market index (DFM) closed up 0.38 per cent at 5,078.37, The Abu Dhabi Securities Exchange index (ADI) closed up 0.27 per cent at 5,058.44.

Dubai suffered a rather rocky morning, dropping down to just above 5,000 before a series of sustained gains in the afternoon closed the week’s business on a high. Abu Dhabi’s bumpy ride continued will into the afternoon, with a series of exchanges in the last half-hour of trading carrying it up from 5,045.

Technical analyst Osama Al Ashri said the DFM’s targets remained high, with targets between 5,470 and 5,550, and gave similar figures for Abu Dhabi.

Nearly five-sixths of Abu Dhabi’s Dh754 million worth of trades was in the property sector. Two companies — Aldar and Eshraq Properties — alone accounted for nearly 80 per cent of the value. Both firms’ stock performed well, with Aldar up 3.23 per cent to close at Dh4.15 and Eshraq closing 3.27 per cent at Dh2.21.

Dubai’s total trading value of Dh1.3 billion was a little less reliant on property, which accounted for 63 per cent of the total. While Arabtec, Union Properties, Emaar and Deyaar all making an appearance on the top value list, the banking sector also played a role, which continued interest in Dubai Islamic Bank and Al Salam Bank — Bahrain.

Arabtec closed up 1.34 per cent at Dh9.07. Al Ashri, a member of the UK’s Society of Technical Analysts, said it could now reach targets of Dh10.70 very quickly, but would then fall again to support levels around Dh8.

Union Properties, which closed 6.56 per cent up at Dh2.60, could test strong resistance around Dh2.78, Al Ashri said, and could go to a new high between Dh3.42 and Dh3.49 if it breaks through. If it fails to break the resistance, it could drop to Dh2.17.

Market operators DFM Company, closing at Dh2.65, had already tested support levels, Al Ashri said. He added, “I see new high targets around Dh4.26, in this month I think.”

Emaar, which closed down 0.81 per cent at Dh9,83 following its dividend payout, could go higher. “I think it will test a resistance area around Dh10.80 during this month,” Al Ashri said.

Dubai Islamic Bank closed 2.51 per cent up at Dh6.95. “This security is going toward a 2014 high,” Al Ashri said. “It; s very high today. I see a new resistance area around Dh7.80 to Dh8.24, maybe within this month. It has a positive outlook,”

Aldar and Eshraq dominated Abu Dhabi. Aldar traded between Dh3.97 and Dh4.17 before closing at Dh4.15, “I’m not sure if it will go down again to test new support between Dh3.80 and Dh3.67, but if it goes down it’s no problem. The target is above Dh5 if it breaks first resistance at Dh4.51.”

First Gulf Bank, which closed at Dh17.40 with a total value of trades of Dh39 million, has targets of Dh19, he said.

Dana Gas is still consolidating, he said, but was likely to make a strong push upwards this month. “I think this security will touch resistance from Dh1.07 to Dh1.20; this will happen if it exceeds resistance at 91 fils,” Al Ashri said.

By Andy Staples Editor Universal ?Copy Desk

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