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27 February 2024

Aldar, etisalat and ADCB keep ADX afloat

By Sreenivasa Rao Dasari

Renewed buying support across the board – with the exception to consumer stocks – pushed the Abu Dhabi Securities Exchange (ADX) higher for a second session yesterday. The index added more than one per cent to close at 2759.15 points, a rise of 29.3 points over its previous close of 2729.95.

Property, construction, energy and industrial stocks propelled the index upwards. ADCB shares added 3.85 per cent and closed at Dh1.88. The UAE capital's bourse witnessed modest turnover of Dh107.89 million as more than 30 million shares changed hands in 36 stocks.

RAK Properties added 1.92 per cent to end at Dh0.53 and Sorouh rose marginally by 0.45 per cent to close at Dh2.25. Aldar is on the recovery path after its disappointing results, with investors taking positions at low prices, and it gained 2.11 per cent to close at Dh3.87.

"Aldar, which was under pressure following the results, is moving sideways," Robert McKinnon, Chief Investment Officer at ASAS Capital, told Emirates Business. "The market is awaiting a catalyst that can take the market to the next level."

The stake sale in Zain to India's telecom major Bharti Airtel boosted the sentiment for telecom shares as the deal has resulted in rises in the valuations of telecom companies in the region. Taking cues from the $10.7 billion (Dh39.3bn) proposed deal, investors extended buying support to etisalat, which rose 3.06 per cent and closed at Dh11.80.

Positive terrain

Most of the GCC bourses continued to trade on positive terrain as global cues encouraged the market sentiment. The overnight jump on the Wall Street and renewed buying interest on Asian bourses brought cheer to the region markets.

Led by ADX, Muscat, Saudi, DFM and Bahrain bourses recorded less than one per cent gains, while Kuwait and Qatar indices closed in red with less than one per cent losses. Banking stocks propelled Saudi's Tadawul to close higher for the consecutive sixth session.

Zain shares on Kuwait bourse showed 16-week high as the stock gained 6.8 per cent following the talks on a stake sale to India's telecom giant Bharti Airtel.


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