Dubai index sees renewed selling pressure as key level eyed

By Siddesh Suresh Mayenkar, Senior Reporter

Dubai index witnessed renewed selling pressure on Wednesday, pressured by weakness in real estate shares.

The Dubai index struggled at its 50-day moving average of 2,855. The index had earlier attempted to breach the important level for five consecutive times since Mid-August.

Drake and Scull closed 0.97 per cent higher at Dh0.416, after gaining more than 14 per cent in the previous session.

“As investors await Drake and Scull’s general assembly taking place on Thursday, postponed from last week, bets are that news of the decision have come out and there could possibly be rumours lifting the stock as it is inexplicable it secured a 15 per cent gain in the session whilst keeping in mind the company’s financial and operational statuses,” Issam Kassabieh, senior analyst with Menacorp. DXB Entertainments closed 4.16 per cent lower at Dh0.369.

The Abu Dhabi index was supported due to mild buying in Etisalat and First Abu Dhabi Bank.

The Abu Dhabi Securities Exchange index closed 0.15 per cent higher at 5,001.34.

“Abu Dhabi’s exchange is up again on banks as First Abu Dhabi Bank finds buyers again along with Abu Dhabi Commercial which is expected to post impressive third quarter results, and could possible confirm a merger within the current quarter,” Kassabieh said.

Dana Gas, which closed 1.67 per cent lower at Dh1.18, witnessed bulk deal in Abu Dhabi. Aldar Properties witnessed its lowest level in 52-weeks of Dh1.73, and closed flat at Dh1.75.

Elsewhere in the Gulf, Saudi Arabia’s Tadawul index closed 0.34 per cent higher at 8,008.55.

Saudi Petrochemicals closed 0.73 per cent lower at 27.30 Saudi riyals.

“The trend remains bullish in Sahara Petrochemicals and is headed higher towards the second target of 19.80 riyals in the short term,” Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said.

The Muscat MSM 30 index closed 0.43 per cent lower at 4,515.67.

This article provided by NewsEdge.