The Abu Dhabi Securities Exchange (ADX) witnessed another dull session yesterday, with equities movig in a narrow range.
The market recorded a small turnover of Dh127.50 million and a volume of 36.75 million shares in over 1129 deals in 28 stocks. Of the 28 traded stocks, six advanced and an equal number of stocks remained at their previous levels, while 16 declined on the bourse.
"Activity on the ADX was subdued owing to the active trading on the DFM. Moreover, there was no impacting news as far as the ADX is concerned. Of late, the ADX has been moving in a more stable manner," Hassan El Salah, Deputy Head of Institutional Sales Trading at Al Ramz Securities, told Emirates Business.
The close in red
Barring the healthcare segment, all remaining sub-indices closed in the red. The ADX general index eased 6.15 points, or 0.22 per cent, and closed at 2853.61 points.
"The ADX is expected to move in the range of approximately 20 points from the support level of 2848 points until the 2870 resistance," said Shiv Prakash, Equity Investment Analyst (Technical) at MAC Capital Advisors.
The size of the turnover on the ADX is slipping by the day in the absence of any major buying support owing to a lack of liquidity.
Even a rise in global oil prices has failed to push the market upwards.
The UAE investors are awaiting the first quarter numbers and the market is expected to take the lead from results.
Yesterday, Aldar's shares eased 0.87 per cent and closed at Dh4.54, while RAK Properties and Sorouh stocks closed flat at Dh0.53 and Dh2.49 respectively.
Among banking stocks, Abu Dhabi Islamic Bank and Bank of Sharjah gained 0.64 per cent and 0.60 per cent respectively, and closed at Dh3.13 and Dh1.67. Abu Dhabi Commercial Bank eased 0.99 per cent to close at Dh2.00. National Bank of Abu Dhabi fell 3.35 per cent and closed at Dh11.55. Sharjah Islamic Bank shares dropped 1.01 per cent to close at Dh0.98, while Waha Capital fell 1.28 per cent and closed at Dh0.77.
Julphar shares added 6.67 per cent to close at Dh2.08. Telecom major, etisalat, closed flat at Dh10.70, while Qatar Telecom fell 1.90 per cent and closed at Dh155.
Earlier on January 9, Aabar agreed to acquire a 70 per cent stake valued at $1.7bn in Arabtec. This was subject to the completion of a due diligence procedure and the obtainment of various regulatory and other consents.
Following the cancellation of the deal, Arabtec's first quarter results will set the tone for the near-term projections as funding factor is critical for the UAE's largest listed contractor.
Aabar ends flat
All eyes were on the Aabar Investments stock yesterday, as the deal to acquire a 70 per cent stake in Arabtec was called off.
After the announcement of the deal's cancellation, Aabar's shares rose marginally in early trading and later came down to end flat at Dh2.37, as the stock recorded Dh3.76m in turnover with more than 1.58 million shares changing hands. Another energy major, Taqa, eased 0.79 per cent and closed at Dh1.26.
GCC moves sideways
With a mixed trading pattern dominating the region yesterday, GCC bourses moved in a restricted range. The Kuwait and Qatar bourses fell more than a percent, while the ADX and Muscat indices closed less than 0.50 per cent lower.
The Bahraini bourse recorded a 0.51 per cent gain, while the DFM and Saudi Arabian indices edged up marginally in the absence of major market pushers.
Industries Qatar's first quarter results disappointed the market, pushing the Doha index lower. The drop in net profits for the first quarter impacted SABB Bank shares negatively and this weighed heavily on the Saudi Tadawul. Adding to this, buying activity was very low on the bourse.
Following the results of SABB, banking stocks in the Saudi market slipped into pressure.
Agility shares on Kuwait's bourse rebounded from the previous day's losses, adding 1.7 per cent.