The Dubai index fell on Wednesday, extending losses for another session from their highest level in nearly a month, weighed by weak crude oil. Saudi’s Tadawul index also fell.
The Dubai Financial Market General Index ended down 0.63 per cent lower at 3,906.60, after losing nearly 0.50 per cent in the previous session.
“Weak crude oil prices pulled the market down. The markets, which were down today like Saudi Arabia and Dubai, were most sensitive to crude,” said Sanyalaksna Manibhandu, Manager of Research, National Bank of Abu Dhabi Securities.
Oil slipped below $56 a barrel, pressured by expectations that oversupply in world markets would persist and an industry report saying US crude stocks rose from a record high.
In stock specific movements in Dubai, Takaful-Em, which was the top loser in trade, ended 3.12 per cent lower at Dh0.901, while fashion retailer Marka ended 2.96 per cent lower at Dh1.31.
Damac Properties, which was the most active stock in trade, rose after falling for two consecutive sessions. Damac Properties ended 0.40 per cent higher to be at Dh2.53.
Out of a total of 33 stocks traded on the exchange, shares of 21 companies fell while shares of 10 companies rose.
“The outlook would still be dependent on results from Emaar Properties and Aldar Properties. The impact of fourth quarter numbers would be lesser by the day as we would have just left non-financial companies like Air Arabia and contractors,” said Manibhandu.
Osama Al Ashri, member of British organisation, Society of Technical Analysts expects Dubai index to breach the keenly watched 4,000 levels in the next few days. “As index consolidated for a long time in this area with low trading volumes, and without touching any risky support. I think we would go up,”
Emaar Properties ended 1.50 per cent lower at Dh7.21, while Aldar Properties listed in Abu Dhabi ended steady at Dh2.58.
Aldar Properties may touch new support level of Dh2.27, Al Ashri.
The Abu Dhabi Securities Exchange General Index ended at 4,625.32, down 0.06 per cent. Eshraq Properties, which was the most active stock in trade, ended 2.35 per cent lower at Dh0.83. Dana Gas ended at Dh0.49, up more than 2 per cent.
Saudi’s Tadawul All share Index (TASI) may witness low for this month of 8,780, said Al Ashri.
The index ended 1.79 per cent lower at 9,133.7. Saudi Basic Industries ended 93.93 Saudi Riyals, down 1.72 per cent. SABIC may go down further and see new lows below 84.75 Saudi Riyals, said Al Ashri.
Waha Capital may test new high of Dh3.49 within a few weeks, said Al Ashri.
Waha Capital ended 0.32 per cent lower at Dh3.1.
Elsewhere in the Gulf, Muscat Securities MSM 30 Index ended 0.35 per cent higher at 6,651.21, while Qatar Exchange Index ended 0.17 per cent higher at 12,689.28.
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