News
ADX volumes fall to their lowest in over 14 weeks
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The Abu Dhabi Securities Exchange made it four losses out of five as volumes fell to their lowest level for more than 14 weeks.
Trading was dire, with just 49.3 million shares worth a combined Dh269 million changing hands. The latter figure is more than a third lower than next worst session over this period, which significantly was last Tuesday.
A fortnight ago, this column warned the capital's hopes of conclusively breaking 5,000 points were fading, and although it managed to hold above this mark for two sessions last week, it has since retreated and yesterday fell 0.43 per cent to 4,954 points. Analysts say further declines are likely unless volumes markedly improve, particularly if etisalat continues to struggle.
The telecoms giant – the largest listed UAE company – fell 1.76 per cent to Dh19.50, its second lowest close over the past six months. Yesterday's decline was expected following the passing of its record date for dividend payments.
"Abu Dhabi prices have already peaked, with many overblown," said Ayman El Saheb, Darahem Financial Brokerage director of operations.
"Once foreign funds liquidated positions in Dubai, Abu Dhabi was the better bet, so local and regional investors switched to the capital and drove up prices. It was inevitable these would reach a point where they couldn't be sustained and would have to come down and that's happening now."
Property and energy-related stocks dominated what little activity there was, with Dana Gas claiming more than a quarter of all shares traded as it closed flat.
Aldar Properties and Sorouh Real Estate were the second and third most active stocks with a combined volume of just 12.4m shares, but this pair fell 0.81 and 2.09 per cent respectively. Rak Properties also featured on the volume chart, but it also declined. The big banks had a mixed day – Abu Dhabi Commercial fell slightly, but First Gulf and National Bank of Abu Dhabi both added more than one per cent. Gainers topped losers 19:14, although more significant were the declines in four of the six largest firms on the ADX.
Indeed, the four biggest gainers could only muster a combined volume of just 50,000 shares.
Trading was dire, with just 49.3 million shares worth a combined Dh269 million changing hands. The latter figure is more than a third lower than next worst session over this period, which significantly was last Tuesday.
A fortnight ago, this column warned the capital's hopes of conclusively breaking 5,000 points were fading, and although it managed to hold above this mark for two sessions last week, it has since retreated and yesterday fell 0.43 per cent to 4,954 points. Analysts say further declines are likely unless volumes markedly improve, particularly if etisalat continues to struggle.
The telecoms giant – the largest listed UAE company – fell 1.76 per cent to Dh19.50, its second lowest close over the past six months. Yesterday's decline was expected following the passing of its record date for dividend payments.
"Abu Dhabi prices have already peaked, with many overblown," said Ayman El Saheb, Darahem Financial Brokerage director of operations.
"Once foreign funds liquidated positions in Dubai, Abu Dhabi was the better bet, so local and regional investors switched to the capital and drove up prices. It was inevitable these would reach a point where they couldn't be sustained and would have to come down and that's happening now."
Property and energy-related stocks dominated what little activity there was, with Dana Gas claiming more than a quarter of all shares traded as it closed flat.
Aldar Properties and Sorouh Real Estate were the second and third most active stocks with a combined volume of just 12.4m shares, but this pair fell 0.81 and 2.09 per cent respectively. Rak Properties also featured on the volume chart, but it also declined. The big banks had a mixed day – Abu Dhabi Commercial fell slightly, but First Gulf and National Bank of Abu Dhabi both added more than one per cent. Gainers topped losers 19:14, although more significant were the declines in four of the six largest firms on the ADX.
Indeed, the four biggest gainers could only muster a combined volume of just 50,000 shares.