Dubai
The Tadawul index witnessed a muted reaction on Thursday after the index provider MSCI upgraded the gauge to the emerging market indices as analysts said the news was in the price.
The Tadawul index closed 0.31 per cent higher to 8,191.85 as capital goods and customer service index eked out gains amid losses in the energy index.
“Saudi market’s muted reaction today is not surprising — it is typical of an event that is widely expected to happen. The Tadawul Index gains have been largely shielded by the recent weakness in global emerging markets,” said Vrajesh Bhandari, Portfolio Manager, Asset Management at Al Mal Capital.
The index has gained 13 per cent so far in the year on the back of expectations of an upgrade to the emerging market status. Analysts expect the Tadauwl index to hold its gains from here and trade sideways.
Dubai index snapped a six day losing streak on Thursday amid buying in select stocks like Dubai Islamic Bank, Emaar Properties and Damac Properties.
The Dubai Financial Market general index closed 0.19 per cent higher to 2,928.17 after losing 5.5 per cent in the last six sessions.
Traders resorted to buying during the mid-session, and started with Air Arabia from the lows of Dh0.97, and then started buying other bluechips.
Air Arabia rose a tad after the company detailed its exposure to the embattled Abraaj, which is facing allegations of corporate governance in the funds they managed. Air Arabia closed at Dh1, up 3.85 per cent.
Dubai Islamic Bank closed 1.42 per cent higher to Dh5.01.
“We expect fresh buying from current levels in DIB and recover back higher towards the Dh5.27 resistance, break over shall target next at Dh5.60 in the medium term.,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said. Emaar Properties closed more than 1 per cent to Dh5.20.
The Abu Dhabi Securities Exchange general index closed 0.33 per cent lower to 4,535.26. Elsewhere in the Gulf, the Muscat MSM 30 index closed 0.36 per cent higher to 4,609.87.
