Dubai: Both Dubai and Abu Dhabi stock markets declined on Wednesday.
The Dubai Financial Market index (DFM) lost 3.26 per cent of its value to close at 4,845.78, with a total trade value of just over Dh2 billion. The Abu Dhabi Securities Exchange index (ADX) closed 2.37 per cent down at 4977.67, with a total trade value of Dh1.3 billion.
Only three of the 30 stocks traded on the DFM made gains. The market's property firms bore the brunt of the dip, with Arabtec — which had gained 9.18 per cent on Tuesday — dropping 5.41 per cent to close at Dh6.30, after trading worth 977 million — considerably less than the Dh1.6 billion that fuelled Tuesday's gains.
Emaar lost 3.94 per cent to close at Dh9.75, after trades worth Dh427 million, and Union Properties losing 1.86 per cent to close at Dh2.11 after trades worth Dh170 million. Arabtec, Emaar and Union Properties were the three most-traded shares by value and volume.
Property firms fared better on the Abu Dhabi market, with Aldar gaining three fils to close at Dh4.13 and Eshraq losing three fils to close at Dh1.48.
Abu Dhabi-listed banks fared less well, with the ADX's banking subindex losing 3.33 per cent of its value. Abu Dhabi Commercial Bank lost 7.27 per cent of its value to close at Dh8.16, First Gulf Bank lost 3.68 per cent to close at Dh17, and the National Bank of Abu Dhabi lost 3.54 per cent to close at Dh15.
"I see no risk for the Dubai index," said technical analyst Osama Al Ashri. "If it goes further down, below 4720, only if it breaks that support will the risk start.
"The ADX is in a very critical area. Below 5,000 is human resistance for traders and investors. When they see it below 5,000 it convinces them to sell. Let us see what the closing price it tomorrow and we will see where it's going.
"I think the markets will go up to new highs next month or the month after.
"The markets are OK. They still have volume. The cash escaped from Arabtec to the rest of the market — but it's staying in the market, so that's OK. There's money in the market."
Al Ashri, a member of Britain'sSociety of Technical Analysts added: "Arabtec was unable to exceed its resistance at Dh6.80 and has gone down again, but that's normal. It's still medium risk. It now has resistance at Dh6.85 for it to go up, and Dh5.78 is the support for it to go below Dh5. Trading is in between.
"Emaar is still under risk. It needs to touch resistance above Dh10. It's closing price tomorrow will be more clear than today."
Al Ashri said Aldar was considered a positive stock, but needed to touch important resistance at Dh4.50. "If it closes close to it tomorrow, I expect new targets above Dh5. It's low risk."
ADCB's losses, he said, represented a correction. "It was overbought," he said. "It's gone up and up without a correction, it's approached targets. A correction now is no problem."