Unabated buys keep ADX on positive momentum

Led by Dana Gas and property stocks, the Abu Dhabi Securities Exchange (ADX) rose for the eighth consecutive session yesterday, as buying support continued for real estate stocks.

With gains of more than eight per cent, realty scrips such as Aldar, Sorouh and RAC Properties took the limelight on the bourse. The ADX general index recorded a marginal gain of 13.44 points, or 0.50 per cent, to close at 2724.61 points yesterday, compared to its previous close of 2711.17 points.

"Encouraging second-quarter results and gains on US bourses were the two main factors that lifted the ADX. Of course, oil prices added to the positive sentiment in the market," Vyas Jayabhanu, Head of Al Dhafra Financial Broker, told Emirates Business.

The oil price rose 6.5 per cent to reach $68 per barrel last week, which has helped the market continue its rally.

"Volatility was less on the ADX yesterday as the trading was relatively low because of diversification of investment," said Wadah Al Taha, a senior financial analyst.

The results of Abu Dhabi Commercial Bank (ADCB), which saw a 51 per cent drop in net profits for the second quarter, and Union National Bank (UNB) had limited impact on the market. ADCB shares dipped marginally, by 0.50 per cent, to Dh1.86. Despite a fall in net profits in the second quarter, UNB's stock closed flat at its previous close of Dh3.64, as Credit Suisse kept its outperform rating for it unchanged.

"Aldar led the gains on the ADX, while another fundamentally strong stock, Dana Gas, saw good buying," said Jayabhanu.

Dana Gas, which closed higher by 5.45 per cent at Dh1.14, attracted good buying activity, accounting for 16.74 per cent of the total trading value of Dh339m on the UAE capital's bourse. This followed positive news that a long-lasting dispute regarding one of its projects in Iran had likely eased.

Crescent Petroleum, which owns a 33 per cent stake in Dana Gas, recently announced its plans to seek international arbitration over the gas export contract with Iran's oil firm. Since then, the stock has risen more than 13 per cent. Yesterday, Dana's stock rose 5.5 per cent.

DFM tops GCC

Barring the Bahrain stock exchange, GCC bourses closed higher yesterday, taking positive cues from global markets.

The DFM recorded the highest gain among regional bourses, adding 5.23 per cent. With a 3.11 per cent rise, the Qatari stock exchange emerged the second largest gainer, with the index on a month's high. On Saturday, the Saudi Arabian bourse also went up, with the Tadawul index gaining 2.5 per cent to close at 5814.63 points.

The Bahrain Stock Exchange suffered a loss of 0.45 per cent, closing at 1487.86 points. The ADX and Kuwaiti bourses closed with less than one per cent gains.

Among the stocks, good buying was seen in Aldar and Sorouh, which closed near their upper limits. RAK Properties closed higher by 7.25 per cent at Dh0.73. Dana Gas was up by 5.45 per cent at Dh1.16. Aabar closed higher by four per cent at Dh2.34, and Waha, Taqa and Methaq also attracted good buying from lower levels.

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