News
ADX's nearly flat closure leaves market uncertain
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Abu Dhabi Securities Exchange has closed nearly flat at 4533.83 points, losing 0.70 points, with very low trade value and volume at Dh 349.6m and 69.4m shares respectively.
"The ADX is facing a very critical stage. The upward trend in the market ended two weeks ago and since that time, the index lost around 500 points in a sharp correction. The index closed nearly flat after a short rebound creating uncertainty about its trend on the short-term. It may continue the rebound trend during the next two sessions, or it may end the rebound and enter the predicted long-term downturn trend," said Mohamad Al Beheiri, trading manager at Amana Financial Services.
He said the uncertainty in the ADX led to low turnover because investors could not figure out the next direction and preferred to stay away from trading.
He explained that the ADX index would face this uncertainty until the end of the third quarter when there is a possibility to go down until the level of 4200 points.
Dana Gas stock was among the leading gainers on ADX as it closed at Dh1.74.
The gains came after the company announced that its net profit for the second quarter of 2008 reached Dh34mn, compared to Dh29mn in the same period last year, an increase of 17 per cent.
However, there are increasing worries about the company's deals in Iranian gas.
For technical analyses, the stock is facing strong resistance level at Dh 1.75 and the current closing is creating a downturn trend on the short-term.
The stock is expected to decline to Dh1.60.
Aldar keeps gaining
Despite the general negative sentiment regarding the real estate sector, Aldar Properties was witnessing continuous gains during the past few sessions. The stock closed at Dh 10.35, advancing by around two per cent.
"There was high trading on the stock during the last few sessions, with a high trade volume of around 40m shares. However, trade volume on the stock declined to 8.2m shares yesterday, but the price continued its upward trend," said Mohamad Al Beheiri. He added that Aldar could play a major role in holding the real estate sector from dropping in the ADX and this role can continue during the next few sessions.
"The ADX is facing a very critical stage. The upward trend in the market ended two weeks ago and since that time, the index lost around 500 points in a sharp correction. The index closed nearly flat after a short rebound creating uncertainty about its trend on the short-term. It may continue the rebound trend during the next two sessions, or it may end the rebound and enter the predicted long-term downturn trend," said Mohamad Al Beheiri, trading manager at Amana Financial Services.
He said the uncertainty in the ADX led to low turnover because investors could not figure out the next direction and preferred to stay away from trading.
He explained that the ADX index would face this uncertainty until the end of the third quarter when there is a possibility to go down until the level of 4200 points.
Dana Gas stock was among the leading gainers on ADX as it closed at Dh1.74.
The gains came after the company announced that its net profit for the second quarter of 2008 reached Dh34mn, compared to Dh29mn in the same period last year, an increase of 17 per cent.
However, there are increasing worries about the company's deals in Iranian gas.
For technical analyses, the stock is facing strong resistance level at Dh 1.75 and the current closing is creating a downturn trend on the short-term.
The stock is expected to decline to Dh1.60.
Aldar keeps gaining
Despite the general negative sentiment regarding the real estate sector, Aldar Properties was witnessing continuous gains during the past few sessions. The stock closed at Dh 10.35, advancing by around two per cent.
"There was high trading on the stock during the last few sessions, with a high trade volume of around 40m shares. However, trade volume on the stock declined to 8.2m shares yesterday, but the price continued its upward trend," said Mohamad Al Beheiri. He added that Aldar could play a major role in holding the real estate sector from dropping in the ADX and this role can continue during the next few sessions.