Stocks on the Dubai Financial Market (DFM) moved in a mixed trading pattern with the index moving in a restricted range of 25 points on alternate bouts of buying and selling. The DFM general index ended flat at 1819.87 points yesterday, registering a minuscule gain of 1.17 points or 0.06 per cent.
Hussam Al Husseini, Head of Brokerage at Emaar Financial Services, told Emirates Business: "Today, the market closed a little bit flat. Small investors controlled the trading with their buying and selling. Since the market closed above the support level, I consider it a positive closing."
The market opened on a steady note at 1822 points and moved up a marginal 0.69 per cent in the first half-hour, as trading was in a narrow range on a Dh137 million turnover at 10.35am. By the time the index touched 1837.49 points, which remained the day's high, as the gainers outnumbered losers.
"Intraday if the market gives a break above the critical pivot levels of 1823, we can see the continuation of the bullish move until 1833/1847 resistance levels and below 1823 can further fall until 1799 supports," said Shiv Prakash, Senior Technical Analyst at MAC Capital.
Despite rise of 14 stocks including Emaar Properties and fall in five scrips, the index was hovering in a restricted range. Arabtec was moving up and down during the session. DFM, DSI, DIC and Arabtec were trading flat during noon session.
In the absence of any fresh major buying interest, the index gradually moved downwards and reached day's low of 1813.48 points before closing at 1819.87.
"Dubai Index remained in a thin range for the second consecutive day and closed almost near previous close maintaining higher above the trend line support on the day chart. The stop level comes near 1810 as if this is taken off we may see selling continuing until 1730 supports. As of now the index stays strong," said Prakash.
Trading value on DFM fell to Dh325.69m from Dh540.14m on Tuesday. The exchange recorded trading volume of 130.83mn shares over 3424 deals in 27 stocks.
"The drop in volumes is good. Because foreign investors took fresh positions on Tuesday and they seem to keep their positions intact. So this is a good outlook for the market," said Al Husseini.
Top gainers of the session were Aramex, Union Properties (UP), Tabreed, Emaar and du as these stocks added 1.89 per cent, 1.43 per cent, 1.23 per cent, 0.50 per cent and 0.34 per cent respectively, and closed at Dh1.62, Dh0.71, Dh082, Dh4.04 and Dh2.95.
Realty stocks under pressure
After witnessing buoyancy following the launch of Burj Khalifa, realty majors such as Emaar slipped into pressure as there was no follow on trigger for the segment. However, Emaar and UP stocks inched up.
Among realty stocks, Arabtec shares fell 0.37 per cent and closed at Dh2.72. The major realty gainer UP shares added 1.43 per cent and closed at Dh0.71. Drake and Scull International (DSI) shares closed flat at Dh0.90.
"Investors should focus on sharp movements in small stocks. We can't enter speculative stocks unless we have positive outlook. Stocks such as UP and DSI are witnessing speculative trading of late. I guess small investors continue to control the market for some more time. Under current market sentiment is still positive. Investors are waiting for Arabtec to reach Dh2.85," said Hussam Al Husseini.
Market heavy weight Emaar closed flat at Dh4.04 and stock recorded highest turnover of Dh197.86 million accounting for 59.82 per cent of the total trading on the bourse.
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