- City Fajr Shuruq Duhr Asr Magrib Isha
- Dubai 03:58 05:25 12:21 15:42 19:12 20:38
Energy, real estate and telecommunications sectors supported the Abu Dhabi Securities Exchange (ADX) yesterday to rebound and add 20.39 points, or 0.85 per cent, and close at 2,423.85 points.
After retreating two per cent under selling pressure in the previous sessions, the ADX was able to recover immediately in yesterday's trading. The short-term trend is still bullish in the market and it is projected to hit its next resistance level at around 2,500 points very soon.
Turnover continued at low levels as trade volumes reached 95.6 million shares and trade value stood at Dh149 million. Aldar and Sorouh were the most active stocks during the session.
Energy stocks including Taqa, Dana and Aabar advanced during the session based on strong fundamentals and cash positions, and a positive outlook about the profitability of the sector.
Aldar and Sorouh also continued to be bullish, adding 3.14 and 2.35 per cent respectively. Bellwether etisalat also advanced to Dh12.40 after it added 2.9 per cent.
Strong long-term investors and low speculation are the main factors supporting the ADX, according to analysts.
Amjad Bakir, trading manager at Mac Sharaf Securities, said institutional investors were turning to the ADX for long-term positions, especially on energy and real estate stocks.
"The corrective retreat in the ADX during Tuesday's session was expected after the index had rallied for nine consecutive sessions. However, the trend in the short-term is bullish. Taqa's stock has become very attractive and can advance to its next resistance level at Dh2. Aabar is very strong due to its cash position and this will push the stock higher. Also, Aldar can rally to Dh2.40 and Sorouh to Dh2.33.
"The low turnover in the market also prevented strong speculative movements and this is giving it more stability. The ADX's liquidity is low compared to the DFM and speculators prefer markets of high liquidity to enable them to move quickly," Bakir said.
Also, local institutions have continued to inject liquidity at low levels and at a stable pace for several weeks, which helped to support the market. The ADX is still the only GCC market that has been able to recover all its losses since the beginning of the year, with its index having added 1.42 per cent by yesterday.
The Emirates Securities and Commodities Authority (SCA) has issued a circular to the stock markets operating in the country and to all brokerage firms banning four major local investors from purchasing shares for one year, starting from the beginning of March 2009.
Emirates Business has learnt that the first circular was issued on Tuesday and included the names of two major local investors. Yesterday, the SCA issued another circular banning four investors, two of them mentioned in the first circular. Despite the SCA circular not specifying any reason behind the ban, sources said the investors named were investigated for manipulation in some deals. They also said the investigations were running for more than a year and were not related to any recent movements in the UAE stock markets.
Follow Emirates 24|7 on Google News.