Heavyweight etisalat supported the Abu Dhabi Securities Exchange yesterday, helping the general index to close almost flat amid profit booking in real estate stocks.
The index closed just 1.63 points down at 2855.77 points after it reversed its earlier gains during a generally calm session.
The market moved up and down on low turnover as 47.8 million shares worth Dh101.5 million changed hands. Real estate stocks Aldar and Sorouh remained the most active players, accounting for more than 60 per cent of the total trade value.
Both stocks retreated yesterday as Aldar fell by 0.5 per cent to Dh4.17. The company declined despite announcing a 10-year lease agreement with Retail Arabia International that will see the development of the region's first House of Fraser store at Abu Dhabi's Central Market.
Sorouh fell by 0.8 per cent to Dh2.42 while Rakprop ended the session flat at Dh0.53. In general, the real estate stocks tracked the trend set by Emaar on the Dubai Financial Market.
Realty stocks on the ADX advanced in early trading before facing profit booking later in the session – the same pattern that Emaar followed in Dubai.
"There is calm trading on the ADX at the current stage as the majority of investors are focusing on the DFM," said Abul Hakim Jamil, a trader at Brooge Securities. "Real estate stocks are moving in the market as they are still attracting some liquidity. However, there is deep correlation with the DFM trend."
Banking stocks put limited pressure on the ADX, with NBAD and FGB declining slightly to close at Dh12.45 and Dh17.50 respectively.
Etisalat advanced slightly to Dh12.45, reducing most of losses on the market. However the stock bounced up on very low turnover as most of trading focused on realty stocks.
Analysts expect the market to remain bullish despite profit booking movements and some believe the index will continue its uptrend in the short term.
Shiv Prakash, Equity Investment Analyst at MAC Capital Advisors, said: "If the ADX index remains below the pivot level of 2859 we could see it falling until the support of 2848. If the market breaks above 2,859 points bullishness could be seen until the next resistance level of 2870."
GCC markets remain mixed
The GCC markets had mixed fortunes yesterday as Saudi Arabia's Tadawul index fell 0.4 per cent to 6,695.45 points amid downside movements in banking stocks. In addition, petrochemical stocks dropped, led by Saudi Arabia Fertilizers.
Along with the DFM and ADX, the Bahrain Stock Exchange also closed down. Qatar was the top gainer among the GCC indices at it added 1.16 per cent to close at 7,395.28 points amid a rally by real estate and banking stocks. A rally by Kuwaiti telecom giant of Zain helped the Kuwait Securities Exchange to recover its early losses and end the day in positive territory.
Muscat Securities Market also advanced on the back of a strong rally by banking stocks.