News
Realty, energy sectors pull down Abu Dhabi market
The Abu Dhabi Securities Exchange hit an 18-month low yesterday, following heavy losses in its real estate and energy sectors. The ADX fell 1.98 per cent to 3,128 points, its worst close since May 3, 2007, after eight of its 10 largest stocks declined.
Sorouh Real Estate was the headline loser as it dropped 7.89 per cent to Dh3.27, which is yet another 52-week low, while Taqa lost five per cent.
The Big Five fared better, particularly the banking stocks. National Bank of Abu Dhabi and First Gulf Bank fell 3.57 and 1.25 per cent respectively, but Abu Dhabi Commercial Bank ended in the green. Etisalat fell 1.3 per cent and Aldar Properties also retreated. The latter's loss of 2.22 per cent places it at a new 52-week low.
"Apart from the fourth quarter of 2007, Abu Dhabi has outperformed Dubai for a long while because of its superior cash position and greater immaturity of its property sector," said Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research.
"Abu Dhabi property companies have been unfairly tarred by the same brush as Dubai's and so could be the first to rebound."
ADX 'MAY NOT FALL BELOW 3,000 POINTS'
The Abu Dhabi Securities Exchange may soon arrest its decline, according to Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research. "The ADX could be approaching its bottom now and might not fall below 3,000 points," said Manibhandu.
"Both markets will have to consolidate into the first quarter of 2009. A rally before then would have to be manufactured, say by a huge share buy back plan, but this probably wouldn't be sustainable – the concerns of investors have to be addressed first."
Sorouh Real Estate was the headline loser as it dropped 7.89 per cent to Dh3.27, which is yet another 52-week low, while Taqa lost five per cent.
The Big Five fared better, particularly the banking stocks. National Bank of Abu Dhabi and First Gulf Bank fell 3.57 and 1.25 per cent respectively, but Abu Dhabi Commercial Bank ended in the green. Etisalat fell 1.3 per cent and Aldar Properties also retreated. The latter's loss of 2.22 per cent places it at a new 52-week low.
"Apart from the fourth quarter of 2007, Abu Dhabi has outperformed Dubai for a long while because of its superior cash position and greater immaturity of its property sector," said Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research.
"Abu Dhabi property companies have been unfairly tarred by the same brush as Dubai's and so could be the first to rebound."
ADX 'MAY NOT FALL BELOW 3,000 POINTS'
The Abu Dhabi Securities Exchange may soon arrest its decline, according to Sanyalaksna Manibhandu, Emaar Saudi Financial Services head of research. "The ADX could be approaching its bottom now and might not fall below 3,000 points," said Manibhandu.
"Both markets will have to consolidate into the first quarter of 2009. A rally before then would have to be manufactured, say by a huge share buy back plan, but this probably wouldn't be sustainable – the concerns of investors have to be addressed first."