The Dubai index extended gains for sixth straight day on Monday to hit its highest level in nearly a month buoyed by positive performance in crude oil prices.
The Dubai Financial Market General Index (DFMGI) ended 1.23 per cent higher at 3,710.54, after hitting a high of 3,712.68, a level last seen on March 12.
“We are cautiously optimistic on Dubai markets, though investors would continue to look at geo-political issues and oil prices,” said Tarek Qaqish, head of asset management at Al Mal Capital. Crude gained more than 2 per cent on Monday as dollar weakened.
Osama Al Ashri, member of British organisation, Society of Technical Analysts, said the DFM index will face resistance at 3,793, with the potential for further upside beyond 4,000 levels.
In stock specific movements, Dubai Islamic Bank ended 1.10 per cent higher at Dh6.44, while Arabtec continued its gaining streak to end 1.2 per cent higher at Dh2.52. Union Properties also extended gains to end 7.92 per cent higher at Dh1.09.
“DIB would face resistance at Dh6.79, and if it breaks this resistance, then it may hit a new target of Dh7.21,” Al Ashri said.
Out of a total of 34 stocks traded on the exchange, the shares of 24 companies rose, while the shares of eight companies fell.
Uptick in volumes
“The recent drop in Dubai markets was overdone as markets went down by 45 per cent from the peak due to the drop in oil prices. Even though UAE markets are highly co-related to oil prices, it is less impacted due to a drop in oil prices,” said Qaqish.
Crude oil has almost shed half of its value on concerns over a suply glut amid sagging demand.
“The catalyst is the valuation so we are witnessing an uptick in the volume and uptick in interest from institutional investors,” Qaqish said.
About Dh780 million worth of shares got traded on Monday, more than the recent monthly average of Dh400 million.
The Abu Dhabi Securities Exchange General Index (ADXGI) ended 0.25 per cent higher at 4,553.72.
The index need to break resistance level of 4,720 for further upside, Al Ashri said.
Aldar Properties ended almost flat at Dh2.53, while etisalat ended at Dh11.25. Out of a total of 32 companies traded on the exchange, the shares of 16 companies rose, while those of 12 companies fell.
Elsewhere in the region, Saudi’s Tadawul index ended 0.34 per cent higher at 8,618.63, while the Qatar Exchange Index ended 0.27 per cent lower at 11,731.64.
Muscat Securities MSM 30 index ended 0.16 per cent higher at 6,297.46.
