ADX sees another flat day amid profit booking

The Abu Dhabi Securities Exchange yesterday retreated marginally as investors and institutions booked profits.

The general index, reflecting the downward movement seen throughout the session, eased 20.46 points, or 0.72 per cent, to close at 2837.94 points, compared with 2858.40 on Sunday.

"It's totally profit taking that pulled down the ADX index," Vyas Jayabhanu, Head of Al Dhafra Financial Broker, told Emirates Business. "The market seems to be in buy-and-hold mood as retail investors and institutions prefer to take positions for holding. The ADX will gain momentum from midweek onwards. Oil prices are still above $70 per barrel and this indicates a positive outlook for the UAE markets."

Trading turnover was low at Dh177 million as more than 76 million shares changed hands in 1702 transactions. There was trading in 35 stocks – 10 advanced, 21 declined and four remained unchanged.

Telecom, banking, consumer, energy and realty stocks closed lower, while construction, insurance, healthcare and industrial shares garnered some buying support.

"If the ADX remains below the pivot levels of 2840 we can see it falling until the support level sof 2811," said Shiv Prakash, a technical analyst at MAC Capital. "Bullishness could be seen only from 2840 until the resistance levels of 2870."

RAK Properties lost 2.53 per cent at Dh0.77, FGB fell 1.81 per cent and Abu Dhabi National Energy (Taqa) ended 1.78 per cent lower at Dh1.66. Realty majors Aldar and Sorouh fell by less than one per cent. The list of major gainers included Takaful, Commercial Bank International (CBI), RAK White Cement (RAKWCT), Gulf Cement (GCem) and AKIC.

Construction shares Arkan, fell 0.25 per cent to Dh4.02, Umm Al Qaiwain Cement and RAK Cement eased. GCem added 4.55 per cent at Dh2.30, RAKWCT rose 5.21 per cent to Dh1.01 and Sharjah Cement added 0.51 per cent to reach Dh1.99.

The second quarter results are not expected to influence the market further as they have been priced in, and this resulted in subdued trading.

The major losers were Abu Dhabi National Hotels (ADNH), International Fish Farming, Abu Dhabi Islamic Bank and RAK Properties. The debt instrument NBADCNO316 fell by the maximum 10 per cent, while Asmak fell 4.63 per cent to Dh20.60 and ADNH eased 7.02 per cent to Dh4.50. Telecom major Etisalat fell 0.48 per cent to Dh10.30.


GCC goes sideways

The Saudi, Dubai, Qatar and Bahrain stock exchanges closed marginally higher yesterday, while the Abu Dhabi, Kuwait and Muscat markets recorded losses of less than one per cent.

The drop in oil prices in the second half of the trading day affected equities on the GCC bourses. Global cues resulted in mixed views of the market as Asian stocks closed higher.

Sabic rose more than six per cent following its agreement with Japan-based Mitsubishi Rayon to set up a $1 billion (Dh3.67bn) joint venture. Kuwait Finance House was down 1.6 per cent and Gulf Finance dropped 4.6 per cent, pulling the Kuwaiti index 11.90 points lower.

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