News
Panic selling pushes ADX down to a nine-month low
The Abu Dhabi Securities Exchange plunged to a nine month low amid panic selling of the capital's real estate and telecoms stocks.
The ADX fell 3.83 per cent to 4,474 points, its biggest one-day decline since Mid-January following huge losses in its six largest stocks.
"Both markets will see lower levels in the coming sessions," said Wadah al-Taha, a senior financial analyst.
"For the ADX, it will probably fall until the prop of 4,400 points, but one cannot say whether this will be a strong enough support to halt the decline."
Etisalat, the UAE's largest company by market capitalisation, dropped 4.7 per cent to Dh18.10, a level not seen since November last year.
"The fall in etisalat is completely unjustified and totally unexpected," said Taha.
The capital's turnover was Dh689 million, up seven per cent on the day before.
Aldar Properties was the most active stock in volume and value terms, with 24.8m shares worth Dh249m changing hands and it dropped another 6.1 per cent to Dh10.25, a seven month low.
Meanwhile its rival Sorouh Real Estate slipped another 3.4 per cent to Dh7.60 to take its losses this month to 17 per cent.
"If you look at Sunday's trading pattern, the average trade was worth Dh212,000 on the ADX, compared to Dh128,000 on the Dubai index, so it shows that major investors have been selling the capital's stock," said Taha.
This trend was continued today, with each ADX trade worth an average of Dh209,810, while the figure for Dubai was 38 per cent lower at Dh129,912.
"Most of this selling was in the real estate and service sectors," said Taha.
Support in First Gulf Bank has collapsed, with the lender plummeting a near-maximum 9.5 per cent to Dh21.05, which means it has lost almost a quarter of its value in August.
The other major lenders escaped lightly by comparison, with Abu Dhabi Commercial Bank and National Bank of Abu Dhabi falling 2.98 and 4.26 per cent.
"Yesterday's performance shows that investors react more strongly to negative news than positive news," said Taha.
"It was a weak decline yesterday and it wasn't supported by heavy volumes and so any rebound would be strong and could the market recover yesterday's losses in a few sessions," said Taha.
"The most important factor is the ongoing negative sentiment in the market."
Al-khazna
Foreign investors can now own up to 25 per cent of the UAE Al-Khazna Insurance Company under a decision issued by the Ministry of Economy. The Ministry has given approval to a decision by Al-Khazna's General Assembly allowing investors from the Gulf Cooperation Council and other countries to own up to 25 per cent of its capital, the company said yesterday.
"We are attaching a letter from the Minister of Economy approving the amendment of the company's statute allowing GCC and other investors to own a share not exceeding 25 per cent of the capital," Al-Khazna said in a letter to the Abu Dhabi Securities Exchange, where it is listed along with nearly 60 firms.
The ADX fell 3.83 per cent to 4,474 points, its biggest one-day decline since Mid-January following huge losses in its six largest stocks.
"Both markets will see lower levels in the coming sessions," said Wadah al-Taha, a senior financial analyst.
"For the ADX, it will probably fall until the prop of 4,400 points, but one cannot say whether this will be a strong enough support to halt the decline."
Etisalat, the UAE's largest company by market capitalisation, dropped 4.7 per cent to Dh18.10, a level not seen since November last year.
"The fall in etisalat is completely unjustified and totally unexpected," said Taha.
The capital's turnover was Dh689 million, up seven per cent on the day before.
Aldar Properties was the most active stock in volume and value terms, with 24.8m shares worth Dh249m changing hands and it dropped another 6.1 per cent to Dh10.25, a seven month low.
Meanwhile its rival Sorouh Real Estate slipped another 3.4 per cent to Dh7.60 to take its losses this month to 17 per cent.
"If you look at Sunday's trading pattern, the average trade was worth Dh212,000 on the ADX, compared to Dh128,000 on the Dubai index, so it shows that major investors have been selling the capital's stock," said Taha.
This trend was continued today, with each ADX trade worth an average of Dh209,810, while the figure for Dubai was 38 per cent lower at Dh129,912.
"Most of this selling was in the real estate and service sectors," said Taha.
Support in First Gulf Bank has collapsed, with the lender plummeting a near-maximum 9.5 per cent to Dh21.05, which means it has lost almost a quarter of its value in August.
The other major lenders escaped lightly by comparison, with Abu Dhabi Commercial Bank and National Bank of Abu Dhabi falling 2.98 and 4.26 per cent.
"Yesterday's performance shows that investors react more strongly to negative news than positive news," said Taha.
"It was a weak decline yesterday and it wasn't supported by heavy volumes and so any rebound would be strong and could the market recover yesterday's losses in a few sessions," said Taha.
"The most important factor is the ongoing negative sentiment in the market."
Al-khazna
Foreign investors can now own up to 25 per cent of the UAE Al-Khazna Insurance Company under a decision issued by the Ministry of Economy. The Ministry has given approval to a decision by Al-Khazna's General Assembly allowing investors from the Gulf Cooperation Council and other countries to own up to 25 per cent of its capital, the company said yesterday.
"We are attaching a letter from the Minister of Economy approving the amendment of the company's statute allowing GCC and other investors to own a share not exceeding 25 per cent of the capital," Al-Khazna said in a letter to the Abu Dhabi Securities Exchange, where it is listed along with nearly 60 firms.