ADX slips into bearish mode on profit booking

Abu Dhabi Securities Exchange yesterday slipped into bearish mode as telecom, real estate, energy, industrial and banking stocks suffered losses owing to profit booking by retail investors.

The general index fell 23.58 points, or 0.92 per cent, to close at 2,531.94, compared with the previous day's close of 2,555.52.

The technical charts indicate that the next resistance level is at the 2,555 and some correction will be seen. Market experts expect a rally towards the next target of 2,585.

"Aldar and Sorouh both saw profit taking," said Shiv Prakash, a technical analyst at Mac Capital. "The ADX again saw some selling from the resistance levels of 2,585 levels on daily charts. The market closed 0.92 per cent lower at 2,555.52 with Sorouh, Aldar, Taqa and Waha seeing profit booking. Stocks that showed strength in the falling market were RAK Properties, Dana Gas and UCC."

RAK Properties was 6.45 per cent up at Dh0.66, Dana Gas rose by 5.63 per cent to Dh 0.76 and AD National Hotels gained 4.19 per cent to reach Dh 3.20. Among the banks, Abu Dhabi Commercial bank closed 1.17 per cent higher at Dh1.75 and Abu Dhabi Islamic Bank closed flat 0.01 per cent up at Dh3.03. Cement stocks that gained include Gulf Cement, which closed higher 5.58 per cent at Dh2.65.

The ADX recorded Dh282 million trading turnover as 212 million shares changed hands in 3,408 deals. Of the 37 traded companies, 16 advanced and 19 declined on the UAE capital's bourse, while two closed unchanged. The major value pushers were Aldar, RAK Properties, Sorouh and Dana Gas, while the most active companies that contributed significantly to the trading volume in number of shares include RAK Properties, Dana Gas, Sorouh, Waha and Aldar.

Analysts say risk appetite is up and the market might move higher before getting into consolidation. Senior market analyst Wadah Al Taha said: "The market is poised for a rebound and I think the first quarter results won't affect the market sentiment."


GCC turns skittish

The trading pattern on the GCC bourses reflected a mixed trend yesterday as the Kuwait, Muscat, Bahrain and Cairo exchanges remained flat with gains of less than one per cent gains, while the ADX, DFM, Saudi Arabia, Doha and Amman closed in the red.

After being influenced solely by local factors for some time the regional bourses were dancing to the tunes of the global markets, said an analyst.

Saudi Arabia's Tadawul All Share Index lost 0.27 per cent, or 13.61 points, to finish the day at 5,068.93. Kuwait's benchmark index gained 65.80 points, or 0.91 per cent, at 7,300.10 points, the Muscat index was up 40.61 points, or 0.85 per cent and Bahrain's measure climbed 0.88 per cent, or 14.12 points, to 1,624.26 points.

Saudi Arabia, the largest economy in the Middle East, has performed positively by registering an increase in cement sales during January and February.

"Local factors resulted in positive movements on the Qatar and Saudi markets," said senior market analyst Wadah Al Taha.