ADX upsurge continues as crude, global markets rise

Equities on the Abu Dhabi Securities Exchange continued their upward movement for a second day running yesterday following a fresh rebound on the global markets. The general index rose 1.14 per cent, or 29.64 points, to end the day at 2,637.09 compared to the previous close of 2,607.45. "The oil price rise and positive global cues helped the market to make further gains," Nour Al Zoubi, General Manager of MAC Sharaf Securities, told Emirates Business . "Everything turned out to be positive for the markets. The oil price rise was one of the major triggers that boosted market sentiment." Realty stocks were the market's major booster as Aldar, Sorouh and RAK Properties all rose. RAK Properties jumped 1.49 per cent to Dh0.68 despite reporting a drop of 36.38 per cent in its second quarter net profits, which slid from Dh225.27 million to Dh143.31m year on year. Aldar Properties gained 2.96 per cent to close at Dh3.48 and Sorouh ended up 1.65 per cent at Dh2.46. The ADX index had fallen in six of the previous eight sessions, and Zoubi added: "Trading turnover and volumes were very low and I see some liquidity problems in the market. To sustain the present gains we need to have good volumes regularly." Trading turnover was Dh155m as 83 million shares changed hands in 2,047 transactions. Twenty-seven stocks advanced, three declined and three closed at their previous levels. Aldar, Sorouh, Dana Gas, RAK Properties and RAKCC were the most active stocks. Trading sentiment strengthened further as crude oil prices rose above $60 per barrel in early trading. Energy stocks Aabar, Dana Gas and Taqa shares all closed higher and other gainers include telecom companies Etisalat, QTEL and SudaTel. Meanwhile, ADX announced there would be no trading on Sunday on account of the Isra and Mi'raj holiday. The market will reopen on Monday. Zoubi added: "I believe trading will be in a restrictive range today ahead of three holidays. I guess the UAE markets will continue their upward journey until they hit any bad news." Regional indices up All the GCC stock markets closed higher yesterday as they tracked encouraging global cues. The Qatar exchange witnessed the day's highest gain of 6.55 per cent on expectations of better second-quarter results from banks, which boosted sentiment. The DFM, ADX, Muscat, Bahrain and Amman markets recorded gains of more than one per cent, while Saudi Arabia, Kuwait and Egypt closed with gains of less than one per cent. And, contrary to market expectations, Saudi banks turned out to be positive triggers for the market there as they beat the experts' forecasts for their earnings. The favourable banking results further strengthened market sentiment. Out of the four leading banks which announced their second-quarter results, only Banque Saudi Fransi reported a fall in net profits. Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here .