Volumes on Dubai bourse recovered after a two days of lull as buying was witnessed in select stocks, as traders positioned themselves ahead of long Eid holidays.
Traded volumes jumped to Dh423 million on Monday, the last day of trading for the week, compared to a little over Dh200 million on Sunday.
The most active stock in trade was Dubai Islamic Bank, which ended 2.10 per cent higher at Dh5.35. Traded volumes stood at Dh77 million in DIB, about 18 per cent of the total. Dubai Parks and Resorts, which started construction on its six theme parks, was the second most active stock on bourse.
The stock ended more than half a per cent higher at Dh1.58, with traded volumes placed at Dh72 million.
“Volumes are picking up because we are close to the resistance level in select stocks, so there is some offloading in the market,” said Hisham Khairy, head of institutional trading at Menacorp.
Property majors like Emaar and Arabtec along with Gulf Finance House also ended in positive zone. Emaar Properties ended 1.28 per cent higher at Dh6.33, while Arabtec closed 2.88 per cent higher at Dh1.43. Strong performance on select counters resulted the Dubai index to end 1 per cent higher at 3,371.22.
Out of a total of 37 stocks traded on the exchange, shares of 23 firms rose, while other 8 fell. The rest remained steady.
In Abu Dhabi, the buying frenzy witnessed in banking stocks petered down after the announcement of the boards approval for the merger of National Bank of Abu Dhabi and First Gulf Bank.
Abu Dhabi Securities Exchange General Index closed 0.27 per cent higher at 4,561.92. National Bank of Abu Dhabi ended 0.25 per cent higher at Dh10.30, while First Gulf Bank closed steady at Dh12.85.
Both of the banking stocks cornered trading on the bourse. Dana Gas ended more than 1 per cent higher at Dh0.56. Out of a total of 29 firms traded on the exchange, shares of 11 firms each rose and fell, while the rest remained flat.
Wait and see:
“I’ve advised my clients to book profits and stay away as nobody knows what can transpire in the global markets during the long weekend. For me it is hold and wait and see,” Khairy said.
Markets have been trading at resistance level, which has not been breached, along with analysts are unsure about the global events that can happen over the long weekend.
On Monday, a post-Brexit recovery across European markets stalled on Monday with major share indexes mixed. Volumes were thin as US markets were shut for a holiday.
Elsewhere in the Gulf, Qatar exchange index closed 0.56 per cent higher at 9,980.11. Qatar’s Barwa Real Estate gained 2 per cent after it reported a near-trebling of second-quarter net profit on Monda. Barwa made a net profit of 550 million riyals compared with a profit of 193 million riyals in the prior-year period.
Muscat Securities MSM 30 index ended flat at 5,811.82. Kuwait Stock Exchange index closed 0.38 per cent higher at 5,389.60. Saudi Arabia’s Tadawul index was shut for Eid holidays.