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01 December 2023

ADX sees marginal buying support in bank stocks

By Sreenivasa Rao Dasari

Abu Dhabi Securities Exchange (ADX) pared early losses in lacklustre trading following the marginal buying support extended to bank stocks, while the bourse witnessed bleak buying and selling transactions throughout the session.

Mirroring the sideways of trading, the ADX general index added 5.20 points or 0.20 per cent and closed at 2633.37 points.

The bourse recorded thin trading value of Dh86.52 million and volume of 66.53 million shares over 1441 deals in 32 stocks.

"ADX witnessed a very limited trading and even less as its turnover stood at Dh86m, when compared with DFM. This is what signals that we need to retest the correlation level with the US markets. Sorouh and Aldar were down. I don't think drop in oil prices impacted the market negatively," said Wadah Al Taha.

After moderate selling pressure in the first half of the session, selective buying was seen in the second half. ADX index showed session's low of 2614 points in the first one hour of trading and later recovered.

"Intraday, if the market remains above the pivot levels of 2627 we can see bullishness until 2645 resistance," said Shiv Prakash, technical analyst at MAC Capital.

RAK Cement shares moved up 7.37 per cent at Dh1.04 after the board announced 12 per cent dividend. Sorouh shares were under pressure following the cut in target price by some brokerage firms. The property major's shares eased 1.30 per cent and closed at Dh2.27.

The ADX suspended trading in UNB stock for not submitting the details of board meeting.

GCC moves sideways

Indicating mixed trading trend in the region, Saudi, ADX, Muscat and Bahrain bourses moved up, while DFM, Kuwait and Qatar markets closed lower yesterday. However, the either side of the movements were less than one per cent as the market players were hesitant to take fresh positions.

Despite drop in crude prices, Saudi's Tadawul added 0.34 per cent as bank stocks witnessed marginal buying support. Agility shares on Kuwait market fell five per cent following the rescheduling the court hearing pertaining to overcharging the US army.


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