1.52 AM Tuesday, 27 February 2024
  • City Fajr Shuruq Duhr Asr Magrib Isha
  • Dubai 05:27 06:40 12:34 15:52 18:23 19:37
27 February 2024

ADX registers gains in ninth consecutive session amid bullish outlook

By Mohamad Al Kady

The Abu Dhabi Securities Exchange (ADX) continued its steady upward trend and closed with a gain for the ninth consecutive session after its index added 6.48 points, or 0.26 per cent, and ended at 2454.63 points.

Telecommunications and energy sectors continued to play a major role in the ADX's advancing trend.

Heavyweight etisalat's stock ended the session flat at Dh12.40 after it advanced to Dh12.90 during intraday trading. However, the stock of one of the largest telecommunication companies in the Middle East could not maintain its gains and retreated by the end of the session, which pushed the ADX index to close almost flat.

Dana and Taqa stocks also advanced during the session and added 1.72 and 5.52 per cent respectively. Aabar also advanced by 2.84 per cent to Dh1.75.

The banking sector achieved gains during the session, with Union National Bank adding 7.54 per cent to close at Dh2.09.

However, the real estate stocks created pressures on the ADX index after some profit booking movements on Aldar and Sorouh stocks, which retreated by 1.26 and 1.75 per cent respectively.

Turnover remained at low levels as 60.5 million shares changed hands at a total value of Dh96.1m.

Nineteen stocks advanced during the session, while nine declined and five stocks remained unchanged. There was strong buying on selected stocks, including Taqa, Aabar, Dana and Waha.

The ADX has been able to recover all its losses since the beginning of the year and has become the only gainer among GCC stock markets so far this year, after it added 3.81 per cent. The Dubai Financial Market is second in the list, but is still losing 6.42 per cent. The Saudi stock exchange lost 8.62 per cent, Muscat stocks were down by 10.38 per cent, and Bahraini market down by 12.73 per cent. The worst performers so far this year are the Doha Stock Market, which is down by 36.58 per cent, and Kuwait, down by 16 per cent.

The outlook in the ADX is positive, as the market has been giving some indication of finding its bottom during the past few weeks, while the trend remains bullish in the short term.

Despite the turnover remaining at low levels, analysts considered this a positive indicator for stability in the market, as speculations were contained by the long-term investments of local institutions.

"This low turnover is discouraging aggressive speculation in the market and is preventing high fluctuations in the index. The ADX is building stability and creating a strong outlook for its listed stocks at this stage. Local institutional investments are protecting the market from possible dramatic drops," said Wadah Al Taha, a senior market analyst.

He added that the market faced some profit booking yesterday but the strong performance of energy and banking stocks was able to contain the pressure on the index.

"The low turnover contained movements by speculators in the market and supported the index in building a new upward trend. This type of constant, steady and calm movement may enable the ADX index to break its resistance level at 2,500-2,510 points very soon. The index should also remain over this level for several sessions," Al Taha said.