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ADX sees highest weekly drop in 2M

ADX sees highest weekly drop in 2M
Photo Credit: Arabianeye-Reuters

 

By: Bedour El-Raie

Abu Dhabi – Mubasher: The Abu Dhabi Securities Exchange (ADX) ended the last week of July in the red following a collective decline of its sectors led by energy, real estate and telecom.

The general index dropped 1.34% or 90 points to 4,834.22 points against a rise of 1.87% during the previous four-session week.

Turnover was down 19.5% this week to AED 702.303 million ($191.2 million) against AED 872.607 million ($118.2 million) last week.

Market capitalisation grew by AED 17.635 billion ($4.80 billion) to AED 451.83 billion ($123 billion) from AED 434.2 billion ($118.2 billion) last week.

The energy sector led the ADX’s decliners, sliding 6.16% as Dana Gas and TAQA plunged 6.78% and 4.23%, respectively. The real estate sector lost 1.24% as Aldar and Eshraq retreated 1.47% and 1.25%, respectively.

The banking sector declined 0.43% as the National Bank of Abu Dhabi (NBAD) and Abu Dhabi Commercial Bank (ADCB) lost 0.93% and 0.6%, respectively. The telecom sector dropped 4.07% as Etisalat saw a similar decline following the announcement of its financials for the first half of 2015.

UAE markets are suffering weak liquidity at the present time, making it hard to break into new levels, analysts told Mubasher, adding that they expect this ‘weak state’ to continue in the coming period.

On his part, market analyst Tarek Essawy said that UAE market continue to rely on positive vision as companies announce their financials. He expected an increase in trading once markets exit the bottleneck, which is a transitional period for markets.

Meanwhile, market analyst Waddah Taha said that the main aspect of UAE markets at present is the weak liquidity, which acts as an impediment, preventing the markets from entering new levels, the analyst said, adding that he expects this state of weakness to continue in the coming period and possibly for the next three weeks.