The Abu Dhabi Securities Exchange, after rising continuously for six sessions, recorded a miniscule setback yesterday as real estate stocks weighed heavily on the market.
Construction and industrial stocks supported the general index which, reflecting the day's pattern of sideways trading, saw a marginal fall of 1.59 points, or 0.06 per cent, as it closed at 2,866.18 points.
Realty stocks were hit worst, with Sorouh easing 1.24 per cent to close at Dh2.39, Aldar down 0.99 per cent at Dh4.02 and RAK Properties down 1.85 per cent at Dh0.53.
Among the energy stocks, Aabar eased 0.88 per cent to close at Dh2.26 and Taqa fell 1.63 per cent to Dh1.21, while Dana Gas closed flat. Sudan Telecom, Methaq, Green Crescent Insurance, Agthia, Asmak closed higher, supporting the index.
The overall buying and selling pattern reflected a mixed trend that resulted in flat trading over the session.
"It was good that the ADX closed flat, this reflected the mood of investors," senior financial analyst Wadah Al Taha told Emirates Business. "Everybody is convinced that the latest stable rally on the bourse is at an agreeable level. From the technical point of view, the difference between the UAE markets is wider as the ADX is more stable than the DFM."
Among the banking and financial stocks, Invest Bank, National Bank of Abu Dhabi, National Bank of Umm Al Quwain and National Bank of RAK moved up, while Abu Dhabi Commercial Bank, Abu Dhabi Islamic Bank, Bank of Sharjah, Union National Bank and Waha Capital closed lower.
The bourse recorded trading value of Dh143.07 million and volume of 63.95 million shares across 1,734 transactions involving 33 stocks.
The most active stocks were Aldar with trading of Dh36.1m, NBQ with Dh31m, Sorouh with Dh13.2m, Dana Gas with Dh10.2m and Arkan with Dh9.6m.
Dana Gas, NBQ, Aldar, Sorouh and RAK Properties were the major volume pushers. RAK Bank, InvestB, Methaq, Bildco and Arkan shares were the gainers on the bourse, while Bank of Sharjah, RAK Properties, Taqa, Sorouh and Waha Capital saw major losses.
Abu Dhabi Real Estate
HC Brokerage is upbeat about the Abu Dhabi real estate market as it feels that macroeconomic factors are turning favourable.
The company has issued a projected target price for Aldar of Dh9.70, indicating growth potential of 143 per cent against yesterday's price of Dh3.98.
"With a potential favourable resolution of the Dubai debt issue, the macro overhang is likely to be lifted, allowing investors to focus on bottom-up fundamentals," said the latest research report from HC Brokerage.
"Aldar is likely to outperform as we feel the Dh9.1 billion asset sale has not been fully discounted by the market.
"The cash injection will provide the company with much-needed liquidity over the medium term."
The brokerage has estimated that Aldar's net debt/equity ratio will drop from 115 per cent to 72 per cent.
The region's bourses saw restricted trading yesterday as the DFM, ADX, Saudi and Muscat closed lower while Kuwait, Qatar and Bahrain moved up.
Barring the DFM, the either-side fluctuations on the remaining bourses were in a range of less than one per cent.
Saudi's Tadawul closed flat as banking stocks and Kingdom Holding moved up , while Sabic eased.
The Qatar index rose on the back of buying of banking stocks.
Zain shares on Kuwait's bourse rose to a five-month high after the stake sale news encouraged investors to take positions.