By: Bedour Al Raie
Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) ended Thursday, the last session of the week and February, in the green for the second session in a row, following direct support from the telecoms, energy and banking sector and ignoring declines on the real estate sector.
The index leaped by 55 points or 1.19% to 4686.19 points, it highest level in nine sessions.
Commenting on the markets’ performance today, market analyst Waddah Taha said that UAE markets saw varied performance during the week’s closing session as the Dubai Financial Market (DFM) witnessed relative stability compared to a notable positive performance on the ADX backed by Etisalat’s financials.
Trading improved compared to Wednesday as 79.8 million shares were traded through 1775 transactions at a turnover of AED 286.54 million against 38.5 million shares on Tuesday at a turnover of AED 92.238 million.
The continued decline in liquidity has become quite worrisome particularly as liquidity is focused on several specific stocks, Taha told Mubasher via phone, adding that this is a negative aspect that indicates “weak markets”.
If we exclude the activity seen on the ADX following Etisalat’s announcement, then UAE markets remain bound by uncertainty and caution owing to the absence of clarity regarding the markets’ direction, Taha noted.
Boosted by Etisalat, the telecom sector surged by 3.88% as the stock gained similarly. This follows Etisalat’s announcement of its financials earlier today. During Thursday’s mid-trades, the telecom’s stock reached a 10-year record high topping the most active trades with a turnover of AED 56.336 million, making up 20% of the ADX’s total turnover.
Taha confirmed that Etisalat’s stock was the top stock this week, particularly on Thursday and following its results, which acted as a strong catalyst for the market resulting in an overall positive performance on the ADX. This was due to the stock’s heavy weight average.
Regarding the telecom company’s financials, Taha commented that Etisalat’s results showed a decline in revenues in the UAE in favour of international revenues after the UAE telecom acquired Morocco’s Maroc Telecom, providing the firm with diversified revenue sources.
Maintaining dividends at AED 0.70 per share is positive, the analyst highlighted, adding that the bonus shares require raising capital to AED 10 billion.
The energy sector rose by 1.05% as Dana Gas gained 2.22% backed by a 5% increase in oil prices at the closing of Wednesday’s trades. Meanwhile, TAQA fell 1.32%.
Brent crude for April delivery rose by $2.97 to $61.63 per barrel.
The banking sector also added 1.04% as Abu Dhabi Commercial Bank (ADCB) rose by 1.72% and First Gulf Bank (FGB) gained 1.13% after its ordinary general meeting approved a cash and stock dividend. On the other hand, market-maker the National Bank of Abu Dhabi (NBAD) retreated by 1.44%.
The real estate sector, however, fell 0.95%, topping losers, as Aldar Properties lost 1.5%. The sector ignored Eshraq’s gains of 2.47% and topped the most active sector in terms of trade volume with 18.6 million shares traded.
Waddah Taha said he expects fluctuation to continue in both markets in the coming period particularly amid weak liquidity which does not allow markets to hold or go up.
Translated by: Nada Adel Sobhi
