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Dubai, Abu Dhabi markets witness drops

DUBAI: UAE markets dropped on Tuesday, with the Abu Dhabi’s benchmark declining for the fourth consecutive session, as investors continued to book some profit amid low volumes and rotate their cash in regional markets such as Saudi Arabia.

Dubai’s stock gauge, DFM General Index, also fell, losing 1.40 per cent to end at 4091.62.

In the capital, the ADX Securities Index was down 0.96 per cent to 4782.60. Abu Dhabi’s volume picked up slightly from Monday, as it went up to 135.89 million shares, which were valued at Dh347.71.

The situation in Abu Dhabi is a bit more serious, according to Bruce Powers, a financial trader and a columnist for Gulf News.

Significant selling pressure

As of today, he said, there is a daily close below key short-term weekly support of 4820.08. “That means the odds for a further decline have increased, although volume is relatively low so far indicating that significant selling pressure has not yet come into the market,” Powers said. In case of Dubai, he added, the market remains in a sideways trading range as the market sits in a resistance zone.

“The uptrend [in Dubai] remains in tact,” Powers said. “However, if weekly support of 4,026.30 is broken to the downside and there is a daily close below that level, I’d get more concerned that selling might then intensify.”

Saleem Khokhar, head of equities at National Bank of Abu Dhabi, said that after a good start to the year following a strong 2013, “some profit booking and some people taking some money off the table and rotating isn’t unexpected.

“Saudi [Arabia] is holding up a little better, volumes are going up more there than other parts of GCC — so little bit of rotation going on,” he said.

In Dubai, Commercial Bank of Dubai was the biggest loser, plunging 9.78 per cent to Dh6.25. Among the most active stocks in terms of value traded, Emaar Properties and Al Salam Bank-Bahrain fell 1.38 per cent and 0.56 per cent respectively. Dubai Islamic Bank and Dubai Financial Market figured in the top six decliners, shedding 4.68 per cent and 2.60 per cent.

Of the 31 stocks traded in Abu Dhabi, 18 retreated, eight advanced and five remained flat. Arkan Building Materials Company fell 6.67 per cent; Aldar properties dropped 0.96 per cent, First Gulf Bank closed 2.74 per cent lower and Waha Capital lost 0.74 per cent.