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Bourses End Losing Streak

Dubai Financial Market’s General Index ended a six-session losing streak as stocks rebounded from five-week lows, but late selling pressure eroded much of these gains to underline fragile investor sentiment. The index climbed 0.87 per cent to 1,688.11 points after being up as much as two per cent during
 intraday trading.

Arabtec rose 4.29 per cent to Dh2.43, Emaar Properties up 1.18 per cent Dh3.43 and Dubai Financial Market gained 2.48 per cent. These three were among the biggest casualties of Dubai’s recent slide, each falling 15 per cent or more since January 7, the last day’s trading before Arabtec agreed to sell a 70 per cent stake to Aabar Investments in a deal that will dilute 
existing holdings.

Abu Dhabi’s main index also climbed 0.2 per cent to 2,679.50 points as Aabar Investments and Aldar Properties rose to Dh2.34 and Dh4.68 to Dh1.65, respectively. First Gulf Bank fell to Dh15.40 and Dana Gas 
declined to Dh0.96.

“Stocks finally found some support today after a week of selling pressure. Volumes also increased versus yesterday, up 50 per cent in Dubai and 100 per cent in Abu Dhabi,” said Matthew Wakeman, EFG-Hermes managing director for cash and equity-linked trading.

“In order to extend the rebound we need to see some results and preferably good ones in the coming days, he told Khaleej Times on Monday.

The DFM General Index had dropped 8.9 per cent during the previous six days, leaving the 32 companies that make up the index valued at about 5.4 estimated earnings. That compares with 13.5 for the MSCI Emerging Markets Index. Wakeman said there was some selling pressure in the last 30 minutes, but that’s no surprise given the day traders that are dominating volumes currently.

“I still think these are good levels to accumulate large caps whether your investment horizon is short or long term,” he said.

“People are trying to get direction from the market and turnover remains low — there’s a lack of interest from institutions so it’s day traders trying to benefit from volatility, rather than investors trying to build positions,” said Marwan Shurrab, vice-president and chief trader at Gulfmena 
Alternative Investments.

“Today’s move was mainly down a rebound in Saudi Arabia on Sunday, which strengthened sentiment at the pre-open.”

“The market has been hit heavily at the start of the year and we’re now seeing a slight rebound to more appropriate levels where valuations still look attractive,” Shurrab added.

In regional markets, Oman’s MSM-30 Index dropped 0.9 per cent to 6,473 points. The Kuwait Stock Exchange Index and Bahrain’s measure slipped 0.3 per cent to 6,997 points and 1,468 points, respectively. Saudi Arabia’s Tadawul All Share Index added 0.2 per cent to 6,409 points.

· —muzaffarrizvi@khaleejtimes.com

· With inputs from agencies