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ADX moves up in a narrow range amid calm trading

By Mohamad Al Kady

The Abu Dhabi Securities Exchange (ADX) advanced in a narrow range yesterday, amid general calm trading and low turnover. The index added 8.37 points, or 0.32 per cent, and closed at 2608.46 points on a rally in real estate and energy stocks.

The market remained calm and active stocks moved in a narrow range. Turnover declined around 30 per cent yesterday as 60.6 million shares worth Dh129.6 million changed hands.

Real estate stocks continued to lead the trend in the market with Aldar and Sorouh advancing 3.41 per cent and 2.2 per cent respectively. Energy stocks also advanced with Dana rising 1.12 per cent to Dh0.90 and Taqa gaining 1.7 per cent to Dh1.19 while Aabar advanced slightly to Dh2.15.

Heavyweight etisalat created some pressure in the market after it retreated slightly to Dh10.90. The stock is turning active at the current stage as investors are anticipating a good cash dividend from the company.

"As the ADX is moving very calmly at the current stage, investors are focusing on stocks that may distribute cash dividends for earnings in 2009. Etisalat has a good cash position and the telecom sector in general has a positive outlook," said Hussam Al Jundi, General Manager of Electronics Stock Brokerage Company.

"However, real estate stocks Aldar and Sorouh are the main movers in the market and their bounce yesterday was the main contributor in the gains of the ADX index. The market is still moving in a very narrow range and a downturn trend is still there due to the very low turnover," he added. (Mohamad Al Kady)

GCC rally

All GCC stock markets bounced up yesterday after strong corrections at the beginning of the week. There was a feeling among investors that the markets overreacted to the correction in their global peers.

However, the downtrend in US, European and Asian markets may renew the negative sentiment in regional markets. Oil prices are projected to play a major role in determining the sentiment among regional investors. "Global stocks, as well as commodity prices, are going down and this is affecting sentiment," said Ahmed Tabbo, Financial Analyst at Darahem Brokerage.


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