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29 February 2024

Abu Dhabi bourse closes flat as most sectors experience mixed trading

By Sreenivasa Rao Dasari

The Abu Dhabi Securities Exchange witnessed a mixed trading pattern yesterday as most of the sectors recorded alternate bouts of selling and buying.

Realty, construction, banking, insurance and consumer stocks closed lower while telecom, industrial and energy stocks pushed the index upwards.

The general index inched up to close at 2724.75 points, a minute gain of 0.19 points or 0.01 per cent.

Aabar shares gained marginally ahead of Arabtec's board meeting. The stock rose by 0.46 per cent to close at Dh2.18. Early gains by Arabtec on the DFM were eroded and the stock closed with a marginal loss as it turned volatile ahead of the results announcement. Arabtec and Aabar are in the limelight following the news that a stake in the former is to be sold to the latter.

"Market players are waiting for the link-up between Aabar and Arabtec to take place as both bourses are totally correlated," Eyad Abdulnabi, Chief Operating Officer of Al Ramz Securities, told Emirates Business. "Of course global cues such as oil prices are influencing trading."

After rising above $80 per barrel last week oil prices dropped yesterday to $78.50.

Telecom shares attracted speculative buying support. Etisalat gained 0.84 per cent to close at Dh12 and Sudan Telecom moved up 1.87 per cent to Dh2.72.

Shiv Prakash, a senior technical analyst at MAC Capital, said: "On the weekly chart the market still looks bearish, so the corrective bounce faces selling from higher levels. If the market breaks below the support level of 2700 one would consider selling the buy positions. The lower support comes 2668, which is the 61.8 per cent FIB level on the above daily chart."

Barring Sorouh, which gained 0.47 per cent to close at Dh2.16, the real estate stocks closed in the red. Aldar eased 0.55 per cent to Dh3.60 and RAK Properties fell 1.92 per cent to Dh0.51.

Energy stocks also had mixed fortunes as Aabar and Taqa gained while Dana Gas closed 1.2 per cent down at Dh0.82. Taqa rose by 1.63 per cent to Dh1.25.

Among the banking and financial stocks, Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank and Waha Capital rose while Commercial Bank International, First Gulf Bank, Finance House and National bank of Abu Dhabi eased. ADCB gained 2.41 per cent to close at Dh1.70, Adib added 2.52 per cent a at Dh2.85 and Waha Capital added 2.25 per at Dh0.91.


Low volumes persist

The ADX recorded trading turnover of Dh109.04 million and volume of 59.89 million shares yesterday during a session marked by lacklustre trading. Fourteen stocks advanced, 16 fell and four closed at their previous levels. However, the general index has continued to rise for the past three sessions.


GCC bourses recover

The Saudi, Kuwait, Qatar and Muscat bourses recovered marginally yesterday following limited buying support that resulted in technical corrections on the markets. Barring the DFM, the remaining GCC markets closed with gains of less than one per cent.

The Qatar index recovered after easing marginally following the fourth quarter results. Zain and Kuwait Finance House helped the Kuwait market to close higher. Zain shares gained more than 20 per cent following the news that the company was in talks with Indian telecom major Bharti about selling a stake.

Oman Telecom witnessed brisk buying ahead of its dividend payout and the Oman index moved up on expectations of dividends.

Saudi's Tadawul added 0.32 per cent to close at 6444.69 points.


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