Real estate top loser as turnover remains low
The Abu Dhabi Securities Exchange (ADX) remained in its calm trading mood yesterday, moving slightly down in a bearish market sentiment. The index lost 9.68 points, or 0.37 per cent, to close at 2598.78 points.
The real estate sector was the top loser in the market yesterday after it went down by more than five per cent. Aldar retreated 5.66 per cent to Dh4, while Sorouh dropped by 4.31 per cent to Dh2.22. Rakprop also declined two per cent to Dh0.49.
Turnover remained at very low levels, with 83 million shares worth Dh183.5 million changing hands. Real estate stocks remained the top active stocks, while financial and banking stocks started to attract some interest in the market.
Despite the low activity in the ADX, the market kept tracking movements in the Dubai Financial Market at lower volatility. The ADX was also sensitive to the fall in global oil prices.
Credit Suisse has maintained First Gulf Bank and Union National Bank among its list of preferred stocks. Both stocks advanced yesterday and FGB attracted relatively good trade values.
Energy stocks turned calm yesterday, with Aabar, Taqa and Dana retreating during the session despite positive expectations about energy companies after oil and gas prices rebounded sharply last year.
“Energy stocks are expected to attract good investments in the drop in the market,” said Wadha Al Taha, a senior market analyst. “They are considered defensive stocks during downturns.”
GCC STOCKS BEARISH
GCC stocks were bearish yesterday on global corrections and a drop in oil prices, which added more worries for investors about the economic situation in the region.
The DFM was the top loser followed by the Qatar Stock Exchange, which lost two per cent and Saudi Arabia’s All Shares Tadawul Index, which retreated 0.94 per cent. The Muscat Securities Market was the only regional gainer after it added 0.52 per cent. “There is a correlation with global markets at the current stage. Oil prices are causing more worries,” said Wadha Al Taha. “This is the trend in bearish markets as the impact of oil prices in regional economies is limited.”
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