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01 March 2024

Buying interest returns to ADX amid active speculation

By Mohamad Al Kady

The Abu Dhabi Securities Exchange advanced for the second session running yesterday as all sectors advanced amid active speculation across the board.

The general index added 15.22 points, or 0.56 per cent, and closed at 2719.45.

As with Dubai, the banking sector led the positive sentiment on the ADX while leading active stocks remained almost stable and speculation on low cap stocks increased.

Turnover advanced from the very low levels seen at the beginning of the week and doubled yesterday compared with Monday's session as 72.4 million shares worth Dh152 million changed hands.

In addition an increasing numbers of stocks, other than the regular real estate and energy picks, started to attract buying interest. ADIB and FGB joined the list of top active stocks, reflecting renewed interest in banking stocks.

"The ADX has looked stable for several sessions due to low selling pressure while some buying interest has started to appear," said Hosam Al Husseini, Head of Brokerage at Emaar Financial Services. "However this buying interest came from speculators rather than long-term investors.

"It was clear yesterday that speculators used the momentum from positive sentiment about the banking sector and moved across the board to hunt stocks at their lows."

"However this buying interest is not expected to survive for long. Prices were below current levels during the past two weeks and we did not see the current buying interest. Speculators are targeting quick movements on expectations of rallies by some stocks."

ADIB to open up

Abu Dhabi Islamic Bank (ADIB) was the leading player on the ADX yesterday after it announced plans to allow 25 per cent foreign ownership of its stock.

ADIB rallied from the beginning of the session and closed at Dh2.60, up 4.18 per cent. The stock attracted strong turnover during the session amid expectations of an extended rally after the announcement.

ADIB said in a statement on the ADX that its board of directors would meet on February 14 to discuss "allowing non-UAE nationals to own a maximum percentage of 25 per cent of ADIB shares."


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