By: Bedour El-Raie
Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) succeeded in ending Tuesday at a rise for the second day in a row, backed by real estate gains that exceeded declines in five sectors, mainly consumer staples, energy and banks.
The market’s benchmark index inched up 0.04% or 1.98 points to 4,591.27 points, passing the level of 4,600 points at mid-session.
UAE markets continue to try to make up for previous losses incurred due to investors overreacting to certain events, market analyst Waddah Taha told Mubasher via phone, adding that markets are far from a price inflation, despite the recent gains.
The real estate sector grew 1.42% as Eshraq surged 5.88%, while RAK Properties and Aldar gained 1.41% and 0.78%, respectively.
On the other hand, five sectors were in the red, led by the consumer staples sector, which dropped 2.47% as Agthia lost 3.23%.
As for being affected by external factors, Taha said that UAE markets are currently more dependent on internal ones, adding that local markets have a chance at more gains, particularly if geopolitical circumstances and oil prices remain stable.
There are several important factors that will have an effect on markets in the coming period, the analyst said, including Emaar Properties shareholders’ meeting and the record date for Dubai Investment’s dividend distributions.
Moreover, the announcement of companies’ first quarter financials will have a major impact on UAE markets in the coming period, particularly as expectations remain varied, Taha concluded.
The energy sector shed 0.43% as TAQA retreated 1.25%, shrugging off Dana Gas’ 2.27% gains.
The banking sector edged down 0.05% as four banks declined. The National Bank of Abu Dhabi (NBAD), Abu Dhabi Commercial Bank (ADCB) and Abu Dhabi Islamic Bank (ADIB) fell 0.84%, 0.42% and 0.2%, respectively.
Trading fluctuated today, as trade volume increased to 152.5 million shares whereas turnover declined to AED 241 million against 123.5 million shares on Monday at a turnover of AED 280.8 million. A total of 1,992 transactions were executed on the ADX on Tuesday.
The decline in liquidity compared to the same period last year indicates that confidence has not been fully restored due to partial hesitation and caution, the analyst added.
The ADX succeeded in closing Monday at a rise, backed by the banking sector despite declines in the real estate and energy sectors.
Investors are still cautious about trading on UAE markets, despite recent gains, particularly as liquidity remains low and they await the right time to enter the markets, analysts told Mubasher.
Translated by: Nada Adel Sobhi
