Blue chips lead the surge on Abu Dhabi exchange

Major gains in the capital's largest and most-active stocks helped the Abu Dhabi Securities Exchange surge a further 53 points yesterday. The advance was in contrast to Dubai's slight fall, confirming analysts' comments that the capital's bourse was the stronger of the two.

The ADX climbed 1.05 per cent to 5,097 points, which is the best close since June 17 and means it has recouped almost all points shed during its nine-day barren streak.

Volumes also hit a 27-day high, while yesterday's turnover of Dh2.3 billion was the best since June 16. "Money is flowing from Dubai to Abu Dhabi – it's not being reinvested in Dubai stocks," said Mohamed Alami, Naeem Shares and Bonds international desk manager.

"Abu Dhabi should hit a new 52-week high in the next week without any problem, but the ADX is very unpredictable because of etisalat's large weighting and so I tend to look at individual stocks rather than the index to gauge what's going on."

Dana Gas was top trader, claiming 90 million of the 437 million shares that changed hands yesterday, and this activity pushed it up 2.5 per cent to Dh2.05, while second- and third-placed Aabar and Methaq climbed 7.63 and 2.36 respectively.

The former has leaped 17 per cent in the past three sessions, showing that speculators are again up to their old tricks. The same is true for Methaq, which posted a new record high, while another recent favourite, Arkan, added 0.32 per cent.

Aabar's rise is pure speculation on where it will invest next, having sold its last remaining subsidiary, Pearl Energy, in May. It reportedly has Dh2.2bn to invest, Bloomberg reports.

In contrast to Dubai, the big fish were rapacious, with First Gulf Bank surging another 4.12 per cent to Dh29.05 and a new record high, while etisalat climbed 1.01 per cent to Dh20.05, its best close for more than a week. Aldar also increased, rising 1.57 per cent to Dh13.05.

"First Gulf Bank has been performing brilliantly, but there hasn't been any specific news to drive it up," said Alami.

"The current surge is based on speculation of mega second quarter results, although there have been a deluge of broker reports offering buy recommendations and bullish fair values – there's no doubt it's a good stock."

Alami predicts FGB will make further gains today, although selling pressure will increase as its price rises.

National Bank of Abu Dhabi was a major exception, falling for the sixth time in seven sessions to take its losses to more than four per cent in a little under a month.

Sorouh Real Estate climbed 0.84 per cent to Dh9.65 and technical analysis suggests it can conquer Dh10 in the near term. It last closed above this mark in mid-March and has struggled since reaching its 20 per cent foreign ownership limit.


DP World up

DP World increased for the first time this week, adding 1.18 per cent to close on $0.86.

The ports operators closed in the green despite volumes slumping to just 645,000 shares, barely a 10th of Tuesday's total.

Depa remains mired in trouble and it plunged 3.57 per cent to $1.35. This is its lowest ever close and is now 12.9 per cent below the initial public offering price of $1.55. Kingdom Hotels fell four per cent to $6 following a solitary trade.