Dubai: The Dubai index jumped from their lowest level in nearly a week on Tuesday, led by Emaar Properties and Arabtec amid recovering crude oil. The Abu Dhabi index also ended higher.
The Dubai Financial Market (DFM) General Index ended 1.43 per cent higher at 4,591.91, after losing nearly 3 per cent in the previous two sessions.
“There is some consolidation at these levels before the next move,” said Osama Al Ashri, member of British organisation, Society of Technical Analysts.
Analysts said equity investors would eye the movements in crude oil.
West Texas Intermediate crude rose for the second time in three days as investors weighed the likelihood that Opec will reduce output next week and the dollar weakened.
Futures gained as much as 1.1 per cent in New York. Venezuela, one of 12 members of the Organisation of Petroleum Exporting Countries, met with Russia to discuss ways to support oil prices, the foreign ministry in Caracas said yesterday. The dollar traded 0.5 per cent lower against the euro.
Oil has slumped into a bear market as the US pumps at the fastest pace in more than three decades and growth in demand slows.
Back home, Emaar Properties, which was the most active stock in terms of value, rose 2.34 per cent to end at Dh10.95 per share.
Arabtec, which was the second most-active stock in terms of value, ended 3.58 per cent higher at Dh4.05 per share. On the broader Dubai index, out of a total of 28 shares traded on the exchange, shares of 7 companies declined, while shares of 17 companies rose. Volumes were at Dh683 million on Tuesday compared to Dh1 billion earlier in the week.
In Abu Dhabi, the ADX general index ended 0.66 per cent higher at 4,941.48. Out of a total of 30 companies, shares of 19 companies rose, while 9 of them declined and the other 2 remained steady.
“The ADX would test the resistance level of 5,150 in a few weeks,” said Al Ashri.
Etisalat would hit a resistance level of Dh12.80/13.10. Etisalat ended 0.43 per cent higher at Dh11.55 per share.
NCB falls in Saudi:
National Commercial Bank listed in Saudi Arabia fell 5.81 per cent after gaining 40 per cent in the previous three sessions.
The sale of the 25 per cent stake in NCB, as the bank is known, is the year’s biggest IPO after Chinese e-commerce company Alibaba Group Holding Ltd. raised a record $25 billion. The Saudi sale attracted 311 billion riyals of bids for the 300 million shares offered to the Saudi retail investors. The public pension fund was allocated 200 million shares.
The offering overtakes the $5 billion raised by Dubai’s DP World Ltd. in 2007, which was formerly the largest IPO in the Middle East’s history.
