Dubai index’s bounce back fizzles

Dubai

The Dubai index’s 1 per cent bounce on Thursday fizzled on Sunday out due to the absence of continued buying amid a lack of fresh cues.

The Dubai Financial Market General index closed 0.14 per cent lower to 3,192.78, after rising nearly 1 per cent on Thursday.

“Regional markets will remain lacklustre awaiting second quarter results and dividend payments,” Saleem Khokhar, head of equities at First Abu Dhabi Bank asset management group, said.

In stock specific movement, Gulf Finance House closed 1.3 per cent higher to Dh1.46. Emirates NBD closed 0.45 per cent lower to Dh10.45. Emaar Properties closed 1.85 per cent lower to Dh5.85. Ithmaar closed more than 3 per cent higher to Dh0.438.

The Abu Dhabi Securities Exchange index closed 0.21 per cent lower to 4,533.11. Adnoc Distribution closed 0.08 per cent higher to Dh2.63. Etisalat closed 0.05 per cent lower to Dh17.75.

Elsewhere in the Gulf, the Tadawul index in Saudi Arabia closed 0.35 per cent lower at 7,717.31. “In Saudi, the reforms are on the ground, and resilient oil price and MSCI/EM catalyst as well which are boding well for the markets. We see a significant upside from here in Saudi,” Khokhar said.

Dar Alarkan Real Estate Development Co. closed 2.91 per cent higher to 10.98 Saudi Riyals, while Alinma Bank closed 0.30 per cent lower to 20.10 riyals. Al Rajhi Bank closed more than 1 per cent lower to Dh73.20. Saudi Kayan Petrochemical Co. closed 0.77 per cent higher to 13.14 riyals.

The Tadawul index has been the best performing regional index so far with 7 per cent gains, compared to 5 per cent loss in Dubai index.

“We have talked several times about the Saudi market inclusion in global benchmarks that are tracked by billions of dollars in AUMs (assets under management). This is a “beta story” we continue to believe in and we are building exposure accordingly. Since the start of the year, foreign inflows have crossed the $1 billion mark, yet the ownership level is under 1.5 per cent,” Al Mal Capital said in a note.

The Qatar exchange index closed 0.51 per cent lower to 8,802.80.

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.