Dubai: Volumes on the Dubai bourse tumbled by 37 per cent on Thursday even as Emaar witnessed renewed selling pressure.
Traded volumes fell to Dh169 million on Thursday compared to Dh260 million in the previous session. The Dubai Financial Market General Index closed 0.5 per cent lower at 3,334.94.
“Most market are getting tuned to the Fed rate hike in December. Investors are also on back foot ahead of the earnings season and fair valuations,” Saleem Khokhar, head of equities at National Bank of Abu Dhabi’s asset management group.
The most active stock in trade was Emaar Properties, which has been on a losing streak. Emaar Properties has shed more than 6.5 per cent in the past three weeks, triggering selling pressure on the index. Emaar Properties closed 1.33 per cent lower at Dh6.70.
Dubai Entertainments closed 0.66 per cent lower at Dh1.51, while Dubai Islamic Bank closed more than half a per cent lower at Dh5.28. Out of a total of 35 stocks traded on the exchange, shares of 25 firms fell, while other 9 rose. The rest remained steady.
The Abu Dhabi Securities Exchange General Index closed 0.37 per cent lower at 4,347.20. Taqa closed more than 3 per cent lower at Dh0.62. Aldar Properties closed less than a per cent higher at Dh2.57. Out of a total of 23 stocks traded on the bourse, shares of 13 firms fell, other four rose. The rest remained steady.
“The UAE are slightly different from the global markets, we are much attuned to the oil prices. We have chance of a lower downside provided the oil price remains reasonably solid,” Khokhar said. The Dubai index has been on a losing streak amid continuous selling, and buyers are virtually absent due to lack of confidence.
Going ahead, traders would be looking at the third quarter results, along with the elections in the US for leads in the backdrop of stable oil prices.
Elsewhere in the Gulf on Thursday, the Saudi Arabia’s Tadawul index was almost flat at 5,696.83, up 0.07 per cent. The Qatar exchange general index closed 0.13 per cent lower at 10,389.96. The Muscat Securities MSM 30 index closed 0.35 per cent lower at 5,660.22. The Kuwait Stock Exchange index closed 0.35 per cent lower at 5,328. The Bahrain bourse all share index closed 1.27 per cent higher at 1,144.57.
Egyptian stocks jump
Egyptian stocks jumped more than 3 per cent in trade after Saudi Arabia deposited $2 billion with the country, bringing them closer to the $12 loan from the International Monetary fund. The stock gauge has jumped 7.24 per cent in the past two weeks including Thursday’s gains. “The trend remains bullish poised for another bullish breakout to target 9150 in the short term,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities in a note. The EGX 30 index closed 3.8 per cent higher at 8496.78.
Continuous buying was witnessed in Commercial International Bank, which gained more than 11 per cent in the past two weeks. Commercial International Bank was more than 3.8 per cent higher at 53.66 Egyptian pound.
“Traders may hold the buy positions on with targets placed at 57/66 pounds in the short term,” said Prakash.