Sunday, Jun 04, 2017

Dubai: Swing traders were back in action in Dubai stocks on Sunday even as buying was seen in shares of Kuwait-based firms.

The Dubai Financial Market General index closed 0.30 per cent lower at 3,341.54. Gulf Finance House closed 0.85 per cent higher at Dh2.36.

“The swing traders are very much at work, the retail driven momentum names such as GFH, Eshraq, UPP, ARTC continue to attract whatever scant trading volumes are out there,” said Farid Samji, head of asset management at Daman Securities.

Shuaa Capital closed more than 1 per cent higher at Dh1.51. In other stocks, shares of Kuwait-based companies witnessed buying. HITS Telecom closed 7 per cent higher at Dh0.586. About 55 million shares were traded in HITS Telecom, the highest since April.

“We expect a corrective bounce which may lift it towards Dh0.63/0.75. Traders may look to buy at Dh0.56 while placing smaller stop at Dh0.53,” said Shiv Prakash, senior analyst with National Bank of Abu Dhabi Securities. Other shares like Al Madina, Ekttitab and Al Salam also ended positive.

The Abu Dhabi Securities Exchange General index closed 0.1 per cent higher at 4,483.09.

Eshraq Properties closed 0.94 per cent higher at Dh1.07. Union National Bank closed 0.84 per cent higher at Dh4.80. Aldar Properties closed 0.45 per cent higher at Dh2.25.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index was up 0.88 per cent higher at 6,923.74.

The Qatar exchange index closed 0.16 per cent lower at 9,923.60. The Muscat MSM 30 index closed 0.14 per cent lower at 5,427.89. The Bahrain index closed 0.58 per cent higher at 1,332.84.

Positive return

“Recent history suggests that [the holy month of] Ramadan period yields a positive return, will this be the case for the 6th year in a row for the Dubai and Abu Dhabi index remains to be seen,” Samji said.

However, the geopolitical uncertainty in the region is what is keeping him on tenterhooks.

“What is keeping me concerned at the moment is the geopolitical overhang in the region and if the negative sentiments make their way into the markets,” he added.

“However, from a price level and valuations perspective, a number of UAE stocks look pretty decent and there is no reason why we should not surge ahead,” Samji said.

Dubai and Abu Dhabi stocks have given negative returns on a year to date basis.

By Siddesh Suresh Mayenkar Senior Reporter

Gulf News 2017. All rights reserved.