Dubai: UAE markets both closed higher on Wednesday, with the Dubai Financial Market (DFM) up 1.25 per cent at 3.495.73 and the Abu Dhabi Securities Exchange (ADX) up 1.79 pert cent at 4433.74.
Technical analyst Osama Al Ashri said he expected both markets to reach highs in early 2017, citing positive economic outlook and a rise in other markets, with the Dow at a high and European markets near highs.
“I think after this Opec decision we will see oil going to $57 [Dh209] by next year,” he said, pointing out this would give further impetus to markets. “I see a positive outlook. It’s very clear in both daily values and volumes. This is a buying position, not a selling one.”Al Ashri said he considered GFH Financial Group shares undervalued. The Dubai-listed firm’s stock closed 0.52 per cent down at Dh1.90 after trades with Dh209.2 million — Wednesday’s most traded stock by value. He saw the stock rising to Dh2.39 before reaching resistance.
He regarded Emaar stock, which rose by 2.41 per cent to close at Dh7.22 as a being in a defensive position. “It has been trading in this area for a long time, from Dh6.5 to Dh8,” he said.
Dubai Financial Market, which closed 4.92 per cent up at Dh1.28, could reach Dh1.37 by next week. “It’s been trading in its bottom area,” he said. “It’s not a fair value for this share.”
Union Properties, which fell 0.96 per cent to close at Dh1.03, could fall further before rising. “It may record a new low for December, maybe below Dh1, but in the new year I see a level of Dh1.17,” Al Ashri said.
Property shares
The ADX was likely to reach a high of 4489 before meeting resistance by the close of this week or next week, he said. “The value of trades is Dh200 million, which is OK for Abu Dhabi,” he said.
Property shares continued to dominate ADX trading, with property firms holding the first three top trading slots by volume.
Eshraq Properties was the most active stock during Wednesday’s session, seeing 21.7 million shares traded, before closing 0.01 per cent down at Dh1,03. Al Ashri predicted it could reach Dh1.07 by next week. Aldar, which closed at Dh2.66, up 0.06 per cent, after 9,89 million shares changed hands, could reach Dh2.77 in the same timescale.
Manazel Properties, which 5.5 million trades by volume, closed on parity at Dh0.52. Al Ashri suggested it would meet resistance at a new high of Dh0.57.
Factbox: No trading on Emirates Islamic rights issue
Dubai Financial Market (DFM) opened trading on Emirates Islamic Bank’s Dh1.5 billion rights issue on Wednesday, but no trades were completed on the first day.
Trading on the issue will run on DFM until December 21, Subscriptions will open on December 14 and close on December 28.
Wednesday saw a bid for 8,000 shares at Dh0.70, but no offers.
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