Dubai: The Dubai index recovered from an intra-day low to close almost flat as mild buying emerged from traders who sold at higher levels.
The Dubai Financial Market (DFM) General Index closed 0.03 per cent higher at 3,166.43, after hitting a low of 3,139.
“The overall trend is weak. Any recovery may be used to sell at higher levels,” said an analyst who did not wish to be named. The index is still trading below the 50-day moving average — which typically indicates that the trend is bearish — of 3,365.
Emirates NBD closed flat at Dh10.45 while Emaar Properties fell 0.34 per cent lower to end Dh5.87. Dubai Islamic Bank (DIB) shed 1.46 per cent to close at Dh5.41 while Emaar Development slipped 0.49 per cent to end the session at Dh 5.05.
The Abu Dhabi Securities Exchange (ADX) General Index closed at 4,537.65, up 0.08 per cent.
The Tadawul All Share Index paused after gaining for two straight sessions, easing 0.07 per cent to close at 7,775.11. This followed gains of more than 2 per cent in the past two sessions.
“The recent buying from the support zone of 7,330 made it cross over its immediate hurdle at 7,600, hinting further bullishness towards the given target of 8,500,” said Shiv Prakash, a senior analyst with First Abu Dhabi Bank Securities (FABS).
Investors have been buying Saudi equities ahead of a potential MSCI upgrade and Saudi Aramco’s initial public offering.
“Investors are seen buying aggressively select outperformers and also the expectations for inflows of foreign funds in coming months boosted [the] index to a multi-year high,” Prakash said.
“If it [the upgrade] is done, it could attract new big money from foreign funds to the market in the next coming months.”
Elsewhere in the Gulf region, the Muscat MSM 30 index closed 0.50 per cent higher to end the day at 4,899.79.
The Qatar Exchange index closed more than 1 per cent higher at 8,801.75 while the Kuwait index ended the session flat at 6,728.29.