By: Bedour Al Raie
Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) ended Sunday, the first trading session of the week and February, in the green, backed by the real estate and banking sectors despite low turnover.
The ADI surged by 2.61% or 95.79 points to 4552.61 points, its highest increase since January 7, during which it had gained 2.15%, and registering its highest gains in 17 sessions.
Think Financial Services CEO Fady Al Ghattis commented that UAE markets commenced at a sudden price gap this morning, prompting the markets to rise to important levels.
The ADX had moved during the previous week in a downward-sideways movement, he told Mubasher in an exclusive comment, adding that the market will test important support levels between 4420-4400 points. Should the market rebound then it will test resistance at 4600 points, before moving upwards towards the levels of 4800-4850 points, which are important resistance levels.
The Dubai Financial Market (DFM) tested the level of 3700 points thrice last week, and closed below it by 25 points, Al Ghattis said, adding that he expects the market to continue in such performance due to weak trading volumes, which stresses that the wave of declines which hit the market targeted getting the best buying opportunities.
Should the index pass 3700 points, it will see significant negativity that is likely to bring it down to the levels of 3500-3450 points, Al Ghattis highlighted, noting that should the market maintain these levels and rebound, it will return test the levels of 3850 and 3900 points once more.
Should the market pass 3900 points, it will move on to the levels of 4200 and 4500 points, respectively, he added.
The ADX was backed by the real estate sector which added 5.47%, which gained on Aldar Properties, RAK Properties and Eshraq, which rose by 5.49%, 5.56% and 5.33%, respectively.
The banking sector added 2.56%, supported by the National Bank of Abu Dhabi (NBAD), Abu Dhabi Commercial Bank (ADCB) and First Gulf Bank (FGB), which added 4.28%, 3.18% and 2.94%, respectively.
On the other hand, the consumer staples sector fell 2.68% as Agthia retreated by 3.3%. Moreover, the energy sector shed 0.84% as TAQA dropped 2.5%.
Trading volume increased whereas turnover declined compared to Thursday, reaching 100.5 million shares at a turnover of AED 224.36 million against 77.36 million shares traded at turnover of AED 335.93 million.
Companies’ financials and dividend distributions are amongst the top incentives to enter the market at present, Al Ghattis highlighted in his comment to Mubasher.
Translated by: Nada Adel Sobhi
