The Abu Dhabi Securities Exchange closed almost flat for the second session running yesterday as heavyweight etisalat continued its slow upside movements while active stocks in the real estate and energy sectors turned bearish.
The general index added 4.1 points, or 0.14 per cent, to close at 2,859.87 amid calm trading. The market was moving on the same trend as the Dubai Financial Market as it opened in positive territory and then fluctuated slightly until the end of the session.
Turnover remained low as 54.3 million shares worth Dh105.3 million changed hands. Real estate and energy stocks were again the most active players. Aldar retreated slightly to Dh4.17 while Sorouh declined 0.8 per cent to Dh2.41. Dana was the top active stock and closed flat at Dh0.90 while Aabar retreated 1.76 per cent to Dh2.21. "The ADX is trading in a calm way as most of the interest has shifted to the DFM," said senior market analyst Wadha Al Taha.
"The market is facing a deep shortage of liquidity. Both markets are moving according to the trend set by Emaar. Real estate stocks on the ADX are losing their attraction as the liquidity moves to Dubai stocks."
Etisalat added 0.8 per cent to close at Dh12.50 on low turnover. However, the stock was the main player in terms of supporting the ADX's gains after leading active stocks went down.
"Etisalat witnessed a gradual uptrend during the past few sessions prior to the general assembly of the company yesterday," added Al Taha. "However, the turnover in the stock remained low."
Heavyweights in the banking sector had mixed fortunes yesterday as FGB advanced slightly to Dh17.45 while NBAD retreated to Dh12.35. UNB was the major loser as it fell 3.85 per cent to Dh3.22, while ADCB and Adib advanced slightly to Dh1.88 and Dh3 respectively.
"There was mixed trend among the banks, which had very limited impact on the ADX index yesterday. There are still worries regarding the financials of the banking sector due to the increasing liquidity gap.
"Investors are focusing on the fundamentals, especially capital adequacy ratios. Banks need to maintain good rations in their Q1 results and the capital adequacy should remain above 19 per cent, similar to the rates achieved during Q4 last year."
ADX stalls at current level
Global Finance House said in a note that the ADX index was starting to stall at its current levels and the bulls would need to break above the resistance level of 2,907 points – December's high – to attract further buying towards the strong barrier area near 3,000.
"The index closed slightly above the long-term [50 weeks] moving average, but should sustain a close above there to confirm the long-term period bullish outlook," said the note. "Nearby support levels are located at 2,830 points and 2,785 points. Weekly and daily 'RSI' indicators are neutral."
GCC markets bullish
The GCC markets turned bullish yesterday amid positive psychological impact from a recovery by the global markets and oil prices. The US markets rallied overnight while oil prices remained above $80 per barrel, creating positive sentiment among regional investors despite the low level of correlation with global markets.
The Bahrain Securities Exchange was the only loser among the regional stock exchanges. The other markets advanced in a narrow range with the DFM the top gainer, while Saudi Arabia's Tadawul index added 0.69 on a good recovery by petrochemical stocks.
The Kuwait Securities Exchange advanced 0.44 per cent, erasing early loses, on a rally by logistics company Kuwait and Gulf Link Transport. Real estate stocks also rallied on the market.