Most heavyweight stocks on the Dubai Financial Market hit their 52-week lows in trading on Torrid Tuesday, but a large number of them recovered towards the end to close marginally higher.
As many as 10 stocks hit their 52-week lows on the two UAE markets, of which eight were on the Dubai bourse. Market-movers such as Emaar Properties and Dubai Islamic Bank hit levels not seen in a long time.
Emaar crashed below the Dh9 barrier to touch Dh8.95 but recovered to close at Dh9, a price not seen since April 2005. DIB hit a low of Dh7.12 but closed a tad higher at Dh7.21. Although Emirates NBD led the decline with a 4.5 per cent fall, it closed at Dh10.60, significantly above its 52-week low of Dh9.60.
The Abu Dhabi Securities Exchange fared better, with only two stocks setting new 52-week lows. Abu Dhabi National Energy Company, or Taqa, hit an annual low of Dh2.53 before closing at Dh2.60. Sudan Telecommunications Company, or Sudatel, dropped to a low of Dh6 but saw a marginal recovery to Dh6.02 at close. Technical analysts believe the UAE markets have broken key support levels. The sell-off gained momentum as investors closed out positions to meet calls to replenish margins.