Dubai down from 16-week high

Dubai’s bourse slipped off its 16-week high on Sunday as traders booked recent gains on technical cues, while other regional markets were mixed in lacklustre trade with many investors still away after the Eid holidays.

By Nadia Saleem (Reuters)

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Published: Mon 27 Aug 2012, 10:19 PM

Last updated: Tue 7 Apr 2015, 2:34 PM

In the UAE, Dubai’s index fell 0.9 per cent to 1,573 points. Investors are booking gains in property stocks that have rallied after strong quarterly earnings signalled the start of a real estate market recovery in Dubai.

Bellwether Emaar Properties lost 1.7 per cent, Deyaar Development dropped back 8.5 per cent after soaring 13 per cent on Thursday because of a burst of buying in the last minute of trade, and contractor Arabtec shed 1.4 per cent.

“Some of the names in Dubai were stretched from a technical point of view and were looking to correct,” said Amer Khan, fund manager at Shuaa Asset Management. “A lot of people are still away — we’re not back to post-Eid trading levels yet. It’s better that names like Emaar correct on low volumes rather than when people are back.”

A negative 14-day momentum divergence at the recent high suggests the market’s uptrend may flag temporarily, though it will stay medium-term bullish technically while support holds on its uptrend line from June, now at 1,545 points.

Abu Dhabi’s benchmark climbed 0.2 per cent to a fresh five-month high.

Elsewhere, Doha’s measure ticked up 0.07 per cent, extending its gains to close at a 15-week closing high.

The recent rally was mainly driven by local investors speculating in mid- to small-caps, but foreign institutional interest is also returning to Qatar, analysts say — although overall trading volumes remain a small fraction of last year’s levels.

“Foreign institutionals are cutting back on their caution for Qatar. Within all the Mena region, Qatar is a safe haven and is looking attractive from a valuations perspective, while others seem close to hitting a top,” Khan added. Clarity on government spending and corporate earnings growth is also a draw. Qatar Gas Transport, the world’s largest shipper of liquefied natural gas, rose 1.2 per cent. United Development gained 0.9 per cent and Qatar Co for Meat and Livestock climbed 2.3 per cent.

Saudi Arabia’s bourse struggled to extend gains after climbing to a near 15-week high on Saturday. Investors are looking for further cues from global markets to increase risk.

The kingdom’s index ended flat at 7,104 points, recovering early-session declines. The market has rallied more than 200 points so far in August, buoyed by optimism on global markets that further monetary stimulus will help the US economy. Volumes were focused on mid-caps. Property firm Dar Al Arkan and Alinma Bank slipped 1.5 and 0.7 per cent respectively. Telco Zain Saudi gained 2.4 per cent.



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