Etisalat pulls ADX down amid profit booking

Heavyweight etisalat led the Abu Dhabi Securities Exchange (ADX) down amid profit booking yesterday, after the stock saw strong rallies last week.

Etisalat retreated by 1.25 per cent and closed at Dh11.90. The stock faces strong resistance around Dh12 and it went up to this level very quickly last week amid rumours that etisalat might buy the Algerian subsidiary of Egypt-based Orascom Telecom.

"These rumours came while Kuwait-based Zain succeeded in selling its African operations at a good price. This helped to improve the valuation of etisalat and its expansions in Africa," said Fadi Al Said, head of Mena Equities at ING Investment.

"Etisalat's stock retreated yesterday due to profit booking after it rose in very strong rallies last week. We expect the stock to bounce up quickly now, and this will support the ADX."

The ADX yesterday retreated 11.95 points, or 0.43 per cent, to close at 2754.68 points. The turnover was at relatively good levels, with 54.7 million shares worth Dh114.2 million changing hands during the session. Real estate and energy stocks remained the top active ones and the two sectors were the only gainers in the market.

Heavyweights in the banking sector added more pressures on the ADX, with Nbad and Adib retreating slightly.

 

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