Abu Dhabi marches ahead amid mixed market trend

With Aldar, Sorouh and Dana Gas leading the gains, the Abu Dhabi Securities Exchange (ADX) recorded a modest growth of 16.41 points yesterday to close the session at 2774.50 points. The general index's gain was of 0.60 per cent from its close of 2758.09 points the day before.

Interestingly, volumes on the ADX soared to Dh324 million from Monday's Dh86m. More than 133 million shares changed hands on the bourse in more than 2,959 transactions in 34 stocks.

"Taking cues from Dubai market, the ADX also moved up and there was an increase in volume. The Abu Dhabi market is also not moving in tandem with global markets, as strong local factors are having a greater impact," said Eyad Abdulnabi, COO of Al Ramz Securities.

Energy and property stocks lifted the ADX index as Dana Gas recorded an encouraging gain of 5.26 per cent, while Aldar and Sorouh gained more than three per cent. Positive news about Dana Gas Egypt prompted buyers to take positions in the stock. Dana Gas Egypt has achieved a 20 per cent increase in its average daily production rate in 2009 and made its ninth new gas discovery.

Mirroring the sideways movement of trading, 14 stocks advanced, nine retreated and 11 remained unchanged at their previous levels on the bourse. Signs of recovery in the US economy and strong oil prices will be positive factors for the market.

Bildco has received permission from Esca to postpone the sale of 15 million of its shares, which the company's board purchased as part of its buyback scheme. The new deadline is December 10, 2010.

GCC upbeat

After yesterday's retreat, equities on GCC bourses rebounded to move upwards following positive factors such as an uptrend on global markets, rise in oil price and support from regional funds.

With a 1.15 per cent gain, the Kuwaiti bourse led the GCC, followed by Muscat, Saudi Arabia, Qatar, the ADX, Bahrain and the DFM, which recorded gains of less than a percent. A rebound in Agility and Zain stocks pushed the Kuwaiti index up while Bank Muscat helpd Omani index.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.