Dubai: UAE indices are expected to stabilise with a limited downside this week even as Saudi’s index rallied for most part of last week.

The Dubai Financial market general index ended the week at 3,674.40, taking last week’s losses to 5 per cent.

“Markets should stabilise in current levels. The market should see a strong support in between 3,500-4,000 levels. If we see continuation of stability in oil prices at $48 per barrel, we may see better sentiment and opportunities,” said Marwan Shurrab, fund manager and head of trading at Vision Investments & Holdings.

Crude oil held above $48 a barrel on Thursday as speculator buying on hopes for a price rebound offset data showing record-high US crude stocks.

“Sentiments over the UAE stock markets remain uncertain amid lower volatilities and irregular reactions to specific global factors. Range trading is still expected to be the dominant factor during the coming week; we believe the downside from these levels is limited,” Talal Touqan, Head of Research and Advisory at Al Ramz Capital told Gulf News.

Blue chips

“We are still waiting for blue chip companies to start announcing results and that may act like a catalyst for further direction,” said Shurrab.

Traders expect blue chips like Emaar Properties, Arabtec, along with a unit of Damac Properties may announce results over the next few weeks.

“On one hand, solid results and generous dividends have shielded big banks from a steep drop, and might possibly open the window to some upside next week. But an appetite towards a re-entry is still markedly absent,” said Touqan.

National Bank of Abu Dhabi ended the trade 5.51 per cent lower at Dh12.850 on Thursday, even after posting a 28 per cent increase in fourth-quarter profit. NBAD’s net income climbed to Dh1.37 billion from Dh1.08 billion.

First Gulf Bank ended 0.87 per cent lower at Dh17 even as it reported a 18 per cent rise in net profit. First Gulf Bank reported a net profit of Dh5.66 billion in 2014.

“Nonetheless, it seems that disappointing fourth quarter numbers for a few real estate developers have caused some selling pressures on property stocks, triggering some sort of conservatism among traders. Corporate results for major players have yet to be revealed in the coming weeks, while oil prices along with global factors remain on tenterhooks,” said Touqan.

Emaar Properties fell 2.90 per cent in trade to end at Dh6.70, making it the most active stock in trade, while Arabtec, which was the second-most active stock in terms of value, fell 3.65 per cent to end at Dh2.90.