ADX down on profit booking in top stocks

The Abu Dhabi Securities Exchange retreated for the first time in six sessions yesterday but the trend remained bullish and the general index could continue its upside movements in the near term.

The market moved sideways and retreated slightly by 6.25 points, or 0.21 per cent, to close at 2,925.42. Most of the active stocks in the market faced profit booking as the real estate, energy and banking sectors retreated while heavyweight Etisalat helped the ADX to limit its loses.

Turnover also dropped as 89.3 million shares worth Dh189 million changed hands. The real estate and energy stocks Aldar, Sorouh and Dana were the most active players though they all retreated during the session. Aldar fell 0.85 per cent to Dh4.60 and Sorouh declined by 2.36 per cent to Dh2.50, while Dana fell 1.1 per cent to Dh0.89.

Although heavyweights in the banking sector – including NBAD and FGB – advanced slightly or remained flat, RAK Bank put the ADX index under heavy pressure. RAK Bank was the biggest loser on the market as it declined 6.49 per cent to Dh3.60 amid strong selling pressure on the stock.

"The ADX still looks good amid low volatility and low turnover," said Taimur Saadat, Head of Technical Analysis at Arab Capital Markets. "The trend is bullish and may take the index up to 3,000 points but the market will not be able to break through this level in the short term."

Bourses open today

Abu Dhabi and Dubai bourses will be open today even as the UAE observes three days of mourning for the death of Sheikh Ahmed bin Zayed Al Nahayan, Managing Director of Abu Dhabi Investment Authority, a Nasdaq Dubai spokesman and a source at the regulator said yesterday.

Sheikh Ahmed went missing on Friday night after a glider accident at a lake in Morocco. (Reuters)

Etisalat rises

Etisalat advanced slightly by 0.4 per cent to close at Dh12.65 as the stock attracted buying interest. This came amid reports that etisalat was planning to increase its stake in its Saudi Arabian affiliate Etihad Etisalat or Mobily by buying Mobily's shares on the Saudi market.

Mohammad Omran, Chairman of etisalat, said the company was calculating the correct price for Mobily and the acquisition would go ahead this year.

Taimur Saadat of Arab Capital Markets said he expected the telecom sector to lead gains by the ADX in the short term.

"Etisalat looks strong and could witness good gains and reduce the negative impact of bearishness in other sectors."

NBAD oneshare gets attention

The first exchange-traded fund (ETF) to be listed on the ADX, NBAD OneShare, looks set to attract very strong interest in the near future as investors start to monitor its performance, said an analyst.

OnerShare has attracted good turnover since its launch on Thursday and the ETF advanced 1.72 per cent to Dh5.33 yesterday.

"The first ETF on the ADX is expected to attract the attention of investors in the near term," said Taimur Saadat of Arab Capital Markets. "There are high expectations that it may turn out to be the leading security."

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