Abu Dhabi poised to overcome key barrier

The Abu Dhabi Securities Exchange should recapture the 5,000-point mark this week, most analysts agree.

The capital's bourse climbed 0.93 per cent to 4,935 points yesterday, its best one-gain since July 2 and brokers are optimistic that excellent results from its banking sector will help it move further upwards, despite a marked slump in volumes.

Yesterday saw just 99.4 million shares change hands, the lowest total for more than 12 weeks, while total trading was worth Dh656m, which is less than half of Thursday's total.

"Unlike Dubai, the ADX has enjoyed a good year and is trading close to an all time high," said Mohamed Alami, Naeem Shares and Bonds international desk manager.

"Abu Dhabi appears to be consolidating and going above 5,000 should not be a major challenge. The real support is at 4,900, although breaking 5,000 would be a psychological boost.

"After yesterday's rebound, the ADX shouldn't face much selling pressure today, but I don't see it topping 5,100 any time soon." Instead, Alami believes the ADX will move sideways between 4,900 and 5,050 points. Amjad Bakir, Mac Sharaf Securities trading manager, is more bullish and believes the second quarter results will have a huge bearing on the ADX, while urging investors to watch out for the figures from Aabar and Waha.

"Everything depends on the quarterly results, which should be revealed within the next 10 days," he said.

"These will see some stocks making a move and we should break 5,000 in a couple of days. If it can break 5,020, then 5,100 is possible, providing the results are good," Bakir added.

Meanwhile, Methaq was once again the most active stock on the ADX and it added 0.76 per cent.

Dana Gas and Aldar Properties were top on investors' shopping lists and this pair added 1.11 and 1.3 per cent respectively to reclaim some of their recent losses, while Sharjah Islamic Bank, up 1.02 per cent, and Sorouh Real Estate, down 0.79 per cent, completed the volume top five.

The latter closed on Dh8.80, its lowest close since April 1.

"Abu Dhabi should return to above 5,000 points, given the excellent figures from its banking sector," said Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research.

First Gulf Bank and Abu Dhabi Commercial Bank both made gains, with the latter claiming the larger advance as it climbed 1.4 per cent to Dh5.12.

Etisalat was another notable gainer, with the telecoms operator surging 2.03 per cent to Dh20.10, its highest finish for a fortnight.