By: Bedour Al Raie
Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) failed to hold on Wednesday and closed in the red, despite seeing some gains during mid-session trading. Energy and real estate declines affected the index’s performance, bringing it down by 18.99 points or 0.43% to 4,371.68 points.
Commenting on Wednesday’s market performance, Gamal Aggag, general manager at Al Sharhan Centre for Securities and Bonds, said that UAE market declines today were merely rushing profit-taking, adding that the declines were unjustified.
The session saw a good start and the market is improving, he said. However, profit-taking resulted in cutting the session’s early gains, with speculations dominating the session.
Some stocks are controlling the market more than others, the analyst told Mubasher, adding that such stocks generally affect the overall market direction.
Aggag explained that these companies have recently announced positive news as well as new contracts that have boosted market confidence and offered opportunities for the market to grow, thus positively affecting market performance.
Trade volume increase today, reaching 103.15 million shares through 2,322 transactions at a total value of AED 236.296 million against 86.14 million shares on Tuesday at a turnover of AED 221.6 million.
The analyst also told Mubasher that the ADX’s trades showed notable improvement today compared to Tuesday – as opposed to Dubai’s trades.
The energy sector slid 5.29% as TAQA and Dana Gas plunged 6.25% and 4.76%, respectively. The real estate sector deepened losses, falling 2.26% as Aldar and RAK Properties shed 2.49% and 2.78%, respectively.
The banking sector inched down by 0.21%, pressured by the National Bank of Abu Dhabi (NBAD) and Abu Dhabi Commercial Bank (ADCB), which retreated 2.61% and 0.48%, respectively. Gains by Abu Dhabi Islamic Bank (ADIB) and First Gulf Bank (FGB) cut the sector’s losses, as the stocks grew 1.02% and 0.35%, respectively.
Aggag said that despite the improvement, liquidity remains relatively low. Although the session opened in the green, profit-taking during the second half cut the session’s gains.
The market needs more liquidity to boost confidence, he said, adding that traders will receive their dividend distributions in the coming days.
Increasing institutional investments is like a market-saving raft, he noted.
The analyst said this is not a period for declines and that there are positive aspects in UAE markets, but external factors have reversed the markets’ directions.
Wednesday’s declines were accompanied by the Saudi market’s recent opening to foreign investors along with retreating oil prices and tension in Yemen, he added.
The telecom sector and its stock Etisalat fell 0.80%.
Meanwhile, the investment sector rose 3.22% as Waha Capital gained similarly following the approval of its shareholders for a 30% cash dividend. The stock made up a third of the ADX’s liquidity at mid-session on Wednesday.
The real estate sector ranked the most active in terms of turnover, reaching AED 80.5 million through Aldar, while Waha Capital was the most active stock with a trade value of AED 45 million.
Regarding his expectations for Thursday’s session, Aggag told Mubasher that it is hard to predict the market trend amid the current state of fluctuation. However, he confirmed that the wave of declines is nearing its end and that markets are getting to ready to enter a rebounding stage.
Translated by: Nada Adel Sobhi
