Bank and consumer stocks propel ADX northwards

Abu Dhabi Securities Exchange (ADX) moved upwards for the tenth consecutive session yesterday, with its general index adding 7.07 points to close the session at 2762.86 points, netting a marginal gain of 0.26 per cent over its previous close of 2755.79 points.

Banking, consumer and industrial stocks helped the index close higher. First Gulf Bank's (FGB) stock rose 3.44 per cent to Dh16.25, and Abu Dhabi Commercial Bank shares were up 2.11 per cent to Dh1.94. The National Bank of Abu Dhabi stock rose 4.33 per cent to Dh12.05.

Hesham Bakry, institutional sales manager at Al Futtaim HC, said: "Today, it was sideways trading on ADX. An upsurge in global markets and positive oil prices has aided the bourse to keep up its rally."

ADX recorded a low trading value of Dh176m as more than 92 million shares changed hands in more than 2,061 transactions in 35 stocks, of which 14 advanced, 20 declined and one remained unchanged.

Shiv Prakash, technical analyst at MAC Capital, said: "The Abu Dhabi market remained almost flat on very low volumes and managed to close with just a 0.26 per cent gain at 2762.86. FGB, RAKCEC and Waha faced good buying, with selling seen on Taqa, Aldar, Aabar, Agthia and Sorouh."

ADX seems to be moving towards consolidation from the present rally, but on lower volumes, ahead of key earnings for market heavyweights such as Aldar, which closed 2.20 per cent lower at Dh4. Dana Gas's stock eased 1.74 per cent to Dh1.13, while Aabar Investments shed 2.16 per cent to end at Dh2.26.

Mathew Wakeman, Managing Director for Cash and Equity-linked Trading at EFG Hermes, said: "Aabar's investment in Virgin's commercial space operation, Virgin Galactic, is a further diversification away from energy investments and follows its nine per cent purchase of Daimler in March.

"The market's direction for the rest of the week and beyond will depend on key earnings over the next day or so. Oil prices and global markets remain steady so any catalyst to move will come domestically."

Realty majors Aldar, RAK Properties and Sorouh closed lower yesterday. RAK Properties' stock slid 1.37 per cent to Dh0.72 and Sorouh dipped 1.39 per cent to Dh2.84.

"If ADX remains above the pivot levels of 2755 points, then we can see a continuation of the bullish run until 2800 points. Profit booking can be seen if it breaks below 2755 points, which will bring markets lower until its 2727-point support," said Prakash.

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