Emaar Properties snap 4-day decline

04/12/2017 07:24 AST

Emaar Properties rose nearly 3 per cent on Monday, snapping a four day of decline, pushing Dubai index slightly higher.

Emaar Properties, which was the most-active stock on bourse, closed 2.78 per cent higher at Dh7.76.

"Emaar Properties is poised for a bullish breakout over the resistance of Dh7.85 and target Dh8.25 in the near term," Shiv Prakash, senior analyst with First Abu Dhabi Bank Securities said in a note.

Emaar Properties contributed to 23 per cent to the total traded value of Dh373 million. Traded value was at Dh800 million on Wednesday.

The Dubai Financial Market General Index closed 0.34 per cent higher at 3,431.81. In other stocks, Drake and Scull cooled off a bit after witnessing activity last week. DSI closed 0.52 per cent lower at Dh1.90. Dubai Investments closed more than 2 per cent lower at Dh2.41.

The Abu Dhabi index closed 1.02 per cent higher at 4,326.81.

"ADX index charts shows further weakness ahead, on a monthly basis index broke its 4,360 support that has been holding the index all year, next support comes around the 4,225," Hisham Khairy, head of institutional trading at Menacorp.

In other markets, Saudi Arabia's Tadawul index traded above the 7,000 mark, and was 0.12 per cent higher at 7,098.08. The Qatar exchange index closed 2.24 per cent higher at 7,930.38.

Riding volatility

Traders should make use of the volatility than prefer to stay on the sidelines.

"With Opec deal extension and lower geopolitical tension the biggest risk for investors at this stage would be to stay out of the market. The region is still going through massive structural political and economic changes and volatility will probably stay elevated, but the best way to leverage on these changes and ride volatility is by investing in sound businesses. As long as you expect volatility you should not be bothered by it," Marwan Haddad, Lead Portfolio Manager of MENA Equities at Al Mal Capital.

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