Mild buying seen on UAE bourses, but undertone bearish

Dubai:

UAE bourses witnessed a mixed trade on Monday but the undertone is still bearish, according to analysts.

The Dubai Financial Market General Index closed 0.18 per cent higher at 3,298.07.

Emaar Properties closed at Dh6.10, up 0.49 per cent and was the most active stock in trade. Gulf Finance House closed 0.79 per cent lower at Dh1.26.

“GFH has been falling on high selling pressure despite the company’s increasing operational profit. GFH’s fall could be a result of lower than expected dividend distribution or could be a major correction as the stock had rallied over the past year to impressive highs associated with Shuaa Capital,” Menacorp said in a morning report.

Dubai Investments closed 0.89 per cent lower at Dh2.22. Dubai Investments may drop further towards the lower support zone at Dh2.19/2.00 in the medium term, said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities in a note.

Ithmaar closed less than a per cent lower at Dh0.529. Emaar Development closed more than 2 per cent to Dh5.37. The Abu Dhabi Securities Exchange general index closed 0.07 per cent lower at 4,579.48 as the downside was limited due to buying in banking stocks. Abu Dhabi Commercial Bank closed more than 1 per cent higher to Dh7.4. First Abu Dhabi Bank closed flat at Dh11.40. National Bank of Fujairah closed 10 per cent higher at Dh2.2.

Buyers are focused on dividends as they buy into First Abu Dhabi Bank and Etisalat and Dana Gas and Bank of Sharjah as a result of sukuk case and results respectively, the Menacorp note added.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.26 per cent higher at 7,528.24. The Qatar exchange index closed 0.30 per cent higher at 9,106.77. The Muscat MSM 30 index closed 0.14 per cent lower at 5,007.52. The Kuwait index closed 0.15 per cent lower to 6,711.04.