Abu Dhabi bourse drifts lower on thin volumes
The trading pattern on the Abu Dhabi Securities Exchange (ADX) indicated a mixed trend yesterday with telecom, banking and energy stocks falling, and construction, realty and insurance stocks moving up.
The ADX general index eased by a marginal 0.29 per cent, or 7.97 points, to end the session at 2766.53 points.
"Activity on the ADX has not increased. Moreover, some profit taking is being seen in select stocks on the bourse. Market players are still waiting for breakouts as most of stocks are trading at low ebbs," Hussam Al Husseini, Head of Brokerage at Emaar Financial Services, told Emirates Business.
Realty majors Aldar and Sorouh moved up, while RAK Properties closed flat at Dh0.60. Aldar shares were up 1.15 per cent and closed at Dh5.26. Sorouh's stock gained 0.71 per cent to close at Dh2.85.
"Aldar and Sorouh have good outlooks. Investors are looking for new breakouts, such as Dh5.35 for Aldar and Dh2.90 for Sorouh. Once the market reaches the new breakout levels, we can expect some upward movement as it brings in new liquidity in the market," said Al Husseini.
The news of Waha Capital closing a deal worth Dh6.7 billion for transportation aircraft for the UAE Armed Forces boosted market sentiment. Waha Capital's shares gained 5.49 per cent and closed at Dh0.96.
"Intraday if the market gives a break above the critical pivot levels of 2770, we can see the continuation of the bullish move until 2782 resistance level," said said Shiv Prakash, senior technical analyst at MAC Capital. "Below the pivot markets can find support near 2758. Overall trading is stock specific and moving in a thin range," he said.
GCC bourses moved sideways in a restricted range of less than 0.50 per cent. Saudi Arabia, DFM, Qatar and Muscat bourses moved up marginally, while the ADX, Kuwait and Bahrain exchanges closed lower.
Kingdom Holding in the Saudi market was in the limelight after Prince Alwaleed bin Talal of Saudi Arabia transferred 180 million Citigroup shares valued at $600 million (Dh2.2 billion) to the investment company. Following this news, Kingdom's shares surged 8.5 per cent to SR5.10.
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