Profit taking to affect movement on ADX - Emirates24|7

Profit taking to affect movement on ADX

Real estate, energy and banking stocks dominated the session on ADX. (ERIK ARAZAS)

The Abu Dhabi Securities Exchange (ADX) is projected to suffer profit-taking movements during the next few sessions despite the index continuing its rebound for the second session this year.

The ADX gained 29.87 points, or 1.18 per cent, yesterday to close at 2555.54 points.

It advanced at low turnover as 92.7 million shares changed hands at a total value of Dh142.8m. Real estate, energy and banking stocks dominated the session. Aldar, Sorouh, Dana and FGB were the most active stocks during the session. Sorouh advanced by 6.38 per cent to close at Dh3.67. FGB's stock also advanced by 8.12 per cent to close at Dh10.65.

The index is still under its critical resistance level of around 2,600 points as it traded in a thin range, which may retreat to a lower support area of 2,525 points.

Also, the ADX continues to suffer from low liquidity in the market despite the low price levels. The assessment of the turnover is becoming more complicated because prices are very low. Trade volume may be fluctuating in a narrow margin, while trade value is dropping sharply, according to analysts.

The ADX, however, is less volatile than the DFM due to a slightly bullish trend in the ADX real estate sector, which is expected to support the index, according to Sherif Abdul Khalek, institutional trading manager at Beltone Financial.

"Both markets are sharing the same long-term trend. However, the ADX is less volatile in the short-term because leading stocks are holding the index, while stocks such as Aldar and Sorouh are showing a bullish trend in the near term.

"The low turnover is also playing a role in holding the index down as both institutional and individual investors are waiting for the results of listed companies before taking any investment decisions in the market," he said.


Esca upgrade

Emirates Securities and Commodities Authority has approved the transfer of Sorouh Real Estate stock from grade two to grade one after the company met all conditions required to be listed in grade one.

 

Comments

Comments