- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 05:21 06:34 12:33 15:53 18:26 19:40
The Abu Dhabi Securities Exchange (ADX) continued to show stability after it closed marginally up for the sixth consecutive session. The ADX ended almost flat after adding 0.33 points, or 0.01 per cent, and closed at 2338.89 points.
Turnover also declined in the market with 78.3 million shares changing hands at a value of Dh115m. Real estate and energy sectors continued to be the main players in the market, with Aldar, Sorouh, Taqa and Dana dominating around 50 per cent of the total turnover.
The ADX gave confirmation of its steady bullishness towards its resistance level at 2400 points. There are also expectations that the market will continue its minor rally in the short term due to low volatility and the lack of strong speculative movements.
The ADX is getting support from local institutions, which are building long-term positions. Also, the outlook of certain stocks is positive, which is an encouragement for more investors to turn from speculators into long-term investors, according to analysts.
"Heavyweight stocks in the ADX are playing a major positive role in stabilising the market and holding the index in the upward trend in the short term. Also, active stocks such as Aldar and Sorouh have a positive role in the market but their impact on the index is limited," said Hosam Al Husseini, head of brokerage at Emaar Financial Services.
He stressed low volatility in the ADX and limited speculation also reduced pressures on the index despite the low turnover.
"Speculations focused on stocks with small market capitalisation. These movements could not create sharp volatility in the market and it continued its steady upward trend. The index has been advancing for six sessions and we expect some profit booking movements soon.
"However, these movements will have a limited impact on the index because they will focus on small stocks, while there is no speculation on heavyweight stocks."
Al Husseini expected the market to continue consolidating in the short term, after a strong breakout through its resistance at 2300 points, and head to its next resistance at 2400 points.
Wadhah Al Taha, a Senior Market Analyst, said the ADX was the best performer among GCC stock markets for the past two weeks in terms of investments and speculations.
"The market has showed stability in the face of speculations. The continuous closing on the up will support future recovery in the market.
Also, this steady and slow upward trend in the short term is still protecting the ADX index from dramatic drops in the future."
ADX to close unit
The Abu Dhabi Securities Exchange has decided to close its Marina Mall Branch by the end of June this year.
Tom Healy, CEO of the ADX, said: "Having two trading halls so close to each other in Abu Dhabi proved operationally inefficient.
"Unfortunately, there has always been low demand at that particular branch office, as Abu Dhabi-based investors have preferred coming to our headquarters in Al Ghaith Tower."
The ADX Marina Mall branch was opened in November 2006.
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