Turnover expected to fall sharply at capital bourse

The Abu Dhabi Securities Exchange (ADX) is projected to take the same direction as the DFM during the first week of Ramadan, with turnover projected to decline sharply.

The ADX is still in its downturn trend despite showing stability and a sort of consolidation by the beginning of the week.

The index closed nearly flat after it lost 2.68 points and ended the session at 4413.40 points. This closing is comfortably over the support level of 4300 points.

Turnover continued at low levels as trade volumes reached 70.2 million shares at a total value of Dh358m. This turnover is projected to suffer further declines in the next few sessions.

However, Aldar, Sorouh, Dana and FGB remained the most active stocks in the market, while leading stocks, especially etisalat, continued to hold the index, with Aldar creating increasing pressure towards the down side. Khalid Darwish, assistant general manager of Rasmala Brokerage, said the ADX was trying to move sideways to consolidate its current levels.

"Speculations on cheap stocks in absolute terms declined sharply in the last few sessions and this was clear in the sharp decline in turnover and the number of trades.

"The 4,300-level is still the key support level and the market is still closing over this level, which is giving positive indicators," Darwish said.

"The ADX was intact for a long time and then it suffered sharp loses, so it needs consolidation at the current levels. However, the current low turnover will not help the market to consolidate. The ADX's index is still in the downturn channel, but still far from the support level of 4300 points. However, the market will not be able to reverse its downturn trend until it surges to 4850 points," he said.