Dubai stocks suffer amid choppy trade

Dubai’s equity index declined yesterday as stocks struggled to cross a key support level.

“The market is still shaky and the volatility is high,” said Marwan Shurrab,fund manager at Vision Investments & Holdings. “We are seeing a reluctance from investors to step in at the top end of the range right now, which is close to a crucial resistance threshold. They are waiting for a clear catalyst to build momentum,” he added.

The Dubai Financial Market General Index slipped 0.4 per cent to 3,877.77 points.

The next resistance level is around the 3,900 to 4,000 range, Mr Shurrab said.

In anticipation of the earnings season commencing, markets are a little quiet, said Saleem Khokhar, the head of equities at NBAD.

“The results will offer a sense of direction,” he added.

Arabtec Holding, the contracting firm, declined 1.2 per cent to Dh3.06 a share. Emaar Properties, the developer of Burj Khalifa, the world's tallest tower, slipped 0.6 per cent to Dh7.56 a share. Dubai Islamic Bank, the Sharia-compliant lender, declined 0.7 per cent to Dh6.80 a share.

Energy and banking stocks led the declines on the Abu Dhabi Securities Exchange on low volumes.

Dana Gas, the explorer and producer, lost 2 per cent to 48 fils on volumes of 5.7 million shares. FGB also declined 2 per cent to Dh16.65 on 4.14 million shares. Union National Bank dropped 3.5 per cent to Dh5.45 a share.

The Abu Dhabi Securities Exchange General Index slipped 0.7 per cent to 4,525.78.

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