Dubai Bourse To Rise on Drake & Scull Contract Win

Contractor Drake and Scull may support Dubai’s bourse on Sunday after announcing a fresh $130 million contract, while Abu Dhabi’s bourse could face major resistance as it approaches its May high.

Drake and Scull said on Sunday its new contract was from Saudi developer Gulf Related.

Dubai’s bourse rose 2.3 percent last Thursday and Abu Dhabi added 1.2 percent on foreign demand as funds tracking the FTSE All-World index were adjusting their portfolios ahead of the inclusion of a few more stocks from the United Arab Emirates in the benchmark.

The newly-added stocks – Deyaar, Union Properties and Abu Dhabi Commercial Bank – may come under pressure on Sunday as the demand from foreign funds wanes.

Also, Abu Dhabi’s index, which closed at 5,233 points in the last session, faces chart resistance at 5,255 points, the May high which it hit ahead of its upgrade to emerging market status by another index compiler, MSCI.

Qatar’s bourse could also pull back after hitting a fresh all-time high last Thursday thanks to the FTSE index adjustments.

Market heavyweight Industries Qatar said at the end of last week it had put its multi-billion-dollar Al Sejeel petrochemical project on hold and was studying a new scheme instead that would yield better returns.

The global background is neutral as stock markets around the world closed nearly flat on Friday but a major source of uncertainty is now gone after Scotland voted to remain in the United Kingdom.