Profit-taking puts pressure on Abu Dhabi market - Emirates24|7

Profit-taking puts pressure on Abu Dhabi market

88.4 million stocks changed hands at ADX yesterday (SUPPLIED)

Profit-taking movements have created strong pressure on the Abu Dhabi Securities Exchange (ADX) index, which lost 14.38 points, or 0.56 per cent, yesterday and closed at 2541.16 points.

However, the ADX seems to have low volatility due to the stability in its leading stocks, such as Etisalat and NBAD. Turnover continued at low levels with 88.4 million stocks changing hands at a value of Dh226.8m. Aldar, Sorouh and Etisalat continued to dominate trading. Sorouh surged by 6.81 per cent to close at Dh3.92 – a clear close above the resistance levels – and looks bullish enough to see Dh4.20/4.40 in the near term.

The ADX is also projected to go through a long period of sideways trading until listed companies announce their results for 2008.

"Despite the uncertainty among investors at the current stage in the ADX – as most of them are awaiting disclosures – we noticed strong institutional movements during the last few sessions. They are building new positions in the market, but this trend will depend on the nature of these new investments, short or long-term," said a trading manager at Amanah Financial Services. "Some institutions have started to build up new positions in the market, but with very low liquidity. Also, individual investors are taking the same trend and this is clear in the low turnover. The ADX faces resistance at 2700 points and the market is trading well below this level for a long time. This situation may continue in the first quarter. This sideways trading should turn into a positive trend to break through the resistance, which requires strong performance from listed firms in this quarter."


Institutional investors sell Dh8.56bn shares

Institutional investors turned to be net-sellers of Dh8.56bn at the Dubai Financial Market last year.

Data released by the DFM yesterday showed that institutional investors bought stocks worth around Dh85bn and sold stocks worth Dh93.56bn.

Institutional investors were net buyers Dh14.48bn in 2007.

The data also showed that the number of investors at the DFM reached 53,5563 in 2008, an increase of 26.48 per cent compared to 2007. Local investors accounted for 62.79 per cent of the total last year, or 33,6304 investors.

Omanis came second in the list of new investors last year, followed by Indians and Kuwaitis.

 

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