Etisalat support helps ADX end in positive territory

Heavyweight etisalat muted the negative impact of falling real estate stocks at Abu Dhabi Securities Exchange (ADX) yesterday and helped the index close in positive area.

The ADX index moved slightly up by 3.23 points, or 0.12 per cent, and closed at 2602.01 points. The market continued to move calmly with very low turnover, as 65 million shares worth Dh136.8 million changed hands.

Leading active stocks in the real estate sector continued to create pressure on the ADX index. Aldar retreated 2.25 per cent to close at Dh3.90, Sorouh registered a miniscule advance to Dh2.24 while Rakprop ended the session flat at Dh0.50.

Heavyweight etisalat moved up slightly to close at Dh11.00 and helped the index to erase its losses from the real estate sector.

“ADX has been getting vital support from the etisalat stock during the past few sessions. The market is still in a downtrend but stability in heavyweights is helping the index to move relatively calmly,” said Ehab Rashad, Trading Manager at Direct Broker for Financial Services. “There is a sort of confusion in the market as some listed companies in ADX have announced good results for 2009, along with cash and share distributions, but the market has failed to react positively to these announcements.”

Shiv Prakash, Equity Investment Analyst at MAC Capital Advisors, said selling pressures in global markets are affecting sentiment in the region. “Dow Jones, which saw a sharp sell off last week, is now trading on the 20-day moving average on weekly charts and is due for a bounce. This can turn local markets positive.” (Mohamad Al Kady)

Adaviation top gainer 

Abu Dhabi Aviation (Adaviation) was the top gainer in ADX yesterday and added 10 per cent to close at Dh2.42. The rally came after the firm announced a net profit of Dh140.5m in 2009, a 20.8 per cent increase compared with the Dh116.3m in 2008. Earnings per share surged to Dh0.34 in 2009 from Dh0.26 in 2008.

“The result is strong and in line with expectations. In spite of a reduction in local contracts, Adaviation quickly responded by restructuring and adjusting its cost base and securing new contracts abroad,” it said in a statement.

Keep up with the latest business news from the region with the Emirates Business 24|7 daily newsletter. To subscribe to the newsletter, please click here.

Follow Emirates 24|7 on Google News.