DUBAI: Dubai’s bourse rallies to a new two-year high as investors buy stocks lagging an early-year rally, but profit-taking in banks weighs on Abu Dhabi’s market. In Dubai, contractor Drake & Scull jump 5.6 per cent and builder Arabtec gains 4.2 per cent. Dubai Financial Market surges 6 per cent
“Local flows are going into stocks, like DSI, which were lagging compared to the market rally last week,” says Mohab Maher, senior manager -institutional desk at MENA Corporation “Foreign buying is also supporting. This is likely for short-term gains.”
Dubai’s index rises 1.9 per cent to 1,775 points, its highest close since November 2010 and up 9.4 per cent so far in January.
The market is close to completing a major reversal pattern -an inverse head-and-shoulders pattern -which if successful, means a strong move higher.
“Currently the neckline is located at 1,785 level, which is considered being a tough resistance -the breakout of the neckline should occur on high volumes to confirm the pattern and confirm that the UAE markets will witness an extremely bullish move targeting 2,200 and 2,400 in the intermediate term,” says Musa Haddad, head of investment advisory services at National Bank of Abu Dhabi.
In Abu Dhabi, the benchmark slips 0.1 per cent to close at 2,766 points, down for a second session from on Tuesday’s nine-month high.
National Bank of Abu Dhabi and Abu Dhabi Commercial Bank shed 1.3 and 0.9 per cent respectively.
Elsewhere, Qatar’s index gains 0.5 per cent to end at 8,622 points, up 3.1 per cent so far in January.
Shares in Vodafone gains 4.6 per cent to 8.84 riyals per share. The telecom operator reported a narrowing third-quarter loss on Wednesday.
“Vodafone Qatar reported solid December metrics that beat ours and consensus estimates -the beat was on the back of strong subscriber growth,” QNB Financial Services says in a research note. “We maintain our ‘accumulate’ rating with a price target of 9.36 riyals.”
Egypt’s index rises for a second day since on Tuesday’s two-week low as Arab investors buy Cairo stocks.
The main benchmark climbs 0.3 per cent to 5,710 points. The market is up 4.5 per cent so far in January. Shares in National Societe Generale Bank rise 0.5 per cent. Qatar National Bank, which hopes to complete the purchase of a 77 per cent stake in the Egyptian lender within the next two months, said it would not be deterred by a currency crisis in the North Africa country.
Orascom Telecom and Palm Hills Development advance 1.2 and 1.7 per cent respectively. QNB shares on Doha’s exchange rise 0.5 per cent. Arab investors are net buyers, while Egyptians and non-Arab foreign investors are sellers, according to bourse data.
In Oman, Bank Muscat ends 0.3 per cent lower, trimming January’s gains to 4.7 per cent. Oman’s largest listed bank by market value posted a 15.1 per cent rise in fourth-quarter net profit, which came in line with analysts’ forecasts. Oman’s benchmark ends flat at 5,806 points, while Kuwait’s bourse climbs 0.2 per cent to finish at 6,139 points.