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Selling pressures bring ADX in red after 7-session gains

Selling pressures bring ADX in red after 7-session gains
Eshraq
ESHRAQ
-0.70% 0.28 -0.00
ADCB
ADCB
1.45% 8.40 0.12
Aldar
ALDAR
-1.08% 5.52 -0.06

FAB
NBAD
-0.59% 13.40 -0.08
TAQA
TAQA
0.30% 3.33 0.01
FGB
FGB
-0.39% 12.90 -0.05

Dana Gas
DANA
0.15% 0.65 0.00
The benchmark index of the Abu Dhabi Securities Exchange (ADX) failed to end the week on a high note after falling in the red after seven sessions of gains. The ADX had passed the level of 4900 pts on Wednesday but failed to stay above it after falling 1.80% or 88.90 pts to 4861.45 pts.

Turnover was seen at AED 387.08 million as 150.97 million shares changed hands through 2624 transactions. A total of 27 companies traded, of which nine gained, 17 declined and one remained unchanged.

The real estate sector led decliners, dropping 4.18% as Aldar Properties and Eshraq Properties slid by 4.48% and 4.46%, respectively. Eshraq also recorded the highest trades of AED 109 million as 100.73 million shares were traded.

Commenting on the ADX’s performance, general manager of Al Sherhan Centre for securities and bonds Gamal Aggag told Mubasher in a statement that the ADX’s declines came as a surprise today, however they are considered normal, particularly after the gains achieved by the market in the previous sessions. It is important for the market to rebound once more to allow profit-taking to begin. The UAE market is still linked to the US market, which ended its trades on a low note, he said, noting that the Saudi market also commenced the day in the red.

Institutions had the most effect on the market today, as the ADX witnessed strong institutional selling amounting to AED 247.82 million against buy worth AED 202 million, with a net selling of nearly AED 46 million.

The banking sector also fell 2.02% as the National Bank of Abu Dhabi (NBAD), Abu Dhabi Commercial Bank (ADCB) and First Gulf Bank (FGB) all retreated by 5.26%, 2.47% and 2.42%, respectively.

On his part, technical expert Tarek Essawy told Mubasher that the US market’s declines yesterday have cast a shadow on the ADX.

The energy sector also lost 1.19%, pressured by Dana Gas, which dropped 3.23%, whereas TAQA limited the sector’s decline, after adding 3.13%.

Commenting on the energy sector’s performance, Aggag also told Mubasher that the negative news on oil prices and the decline in crude Brent oil prices to below $87 per barrel on Thursday added to pressures resulting from the dollar’s strength have led to weak trading on energy stocks today.