Analysts wonder if it’s a corrective bounce
Dubai: The Dubai index jumped more than 1 per cent on Wednesday after days of fall and analysts are wondering if this is a corrective bounce on the index.
The Dubai Financial Market general index 1.23 per cent higher at 2,831.28. The Dubai index had shed 5.26 per cent in the past four sessions. The index had been moving lower towards the 50-day moving average of 2,705.
“Volumes need to be seen in this recovery otherwise it would be short-lived and the index may re-test the recent low of 2,775,” said an analyst who did not wish to be named. Traded value tumbled to Dh197 million from Dh200-300 million a few days ago.
Emaar Properties closed 0.39 per cent higher at Dh5.20. Dubai Islamic Bank closed 1.95 per cent higher at Dh5.23. Damac Properties closed 1.59 per cent higher at Dh0.96.
Damac may see recovery to Dh1.02 in the near term, said Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities in a note.
The Abu Dhabi Securities Exchange general index closed 0.74 per cent higher at 5,118.76, Abu Dhabi Commercial Bank closed 0.82 per cent higher at Dh8.57.
Etisalat Group closed 1.99 per cent higher at Dh16.42.
Saudi Tadawul index was 1.37 per cent higher at 8,509.38. Saudi Basic Industries Corp. was up 2.15 per cent to end at 104.40 Saudi riyals.
Going ahead, “trading activity is likely to remain subdued as the steam from earnings announcements fades out,” Allied Investments said in a note.